Gold's medium-term role as a target for asset diversification remains valid, but its price is likely to be weighed by a tougher macroeconomic backdrop, say OCBC Group Research strategists in a note. The yellow metal's demand is likely to be anchored by the official sector, with central banks indicating they intend to raise their gold reserves over the next 12 months, the analysts say. However, this is unlikely to fully offset near-term macro pressure from rising real yields and a firmer dollar as investors price in Federal Reserve rate hikes, they add. OCBC expects gold prices to reach $4,360 a troy ounce by end-2026 and $4,680 an ounce by end of 2Q 2027. Spot gold rises 1.4% to $4,180.45 an ounce.(megan.cheah@wsj.com)
Dow Jones Newswires
Gold Likely Remains Valid Target for Asset Diversification in Medium Term — Market Talk
Gold's medium-term role as a target for asset diversification remains valid, but its price is likely to be weighed by a tougher macroeconomic backdrop, say OCBC Group Research strategists in a note. The yellow metal's demand is likely to be anchored by the official sector, with central banks indica…