BMI: The gold price will remain high, but the upside potential may be limited

On June 27th, Jinshi data reported that analysts at the BMI research institution under Fitch Ratings said that gold looks set to receive very good support in the coming months when they raised their 2024 gold price forecast. The price of gold is expected to reach $2250 this year, up from the previous forecast of $2100. However, due to the unclear tug-of-war between the less dovish Fed and the highly tense geopolitical situation, the rise in gold prices may be limited. Fed rate cuts are key to gold’s attractiveness, as lower bond yields shift investment to gold. If the Fed does not cut rates, the rise in the dollar and bond yields will weaken gold’s attractiveness. Although geopolitical tensions should ensure that gold prices remain high this year, brighter global economic growth prospects will dampen people’s interest in gold as a safe haven.