The London-based research firm is forecasting a year-end decline to $1,650 an ounce, but the rally will resume in 2023.
Comment by Caroline Bain, chief commodities economist at the company: "After a sharp depreciation in the second quarter, we believe that the gold exchange rate is near a cyclical low. However, in 2023, the yellow metal will rise in price when you consider the tightening of the Fed's monetary policy. "
Recall that after reaching the mark above $2000 per ounce in March this year, the rate decreased by about 11%. That dynamic has been attributed to a stronger dollar and the Fed's aggressive fight against inflation through interest rate hikes.
Despite this, the world economy can suffer greatly due to the Ukrainian crisis. Therefore, the company predicts an increase in the gold exchange rate in 2023.