Beware gold buyers! The record forecast has arrived!

SAFAKNA TURKEY – Record prices for grams of gold and rising prices for ounces have now been replaced by a decline. When gold prices fell below a critical level, the multinational bank Standard Chartered made a forecast for gold. In a note sent to investors the other day, the bank said gold prices would rise by 30 percent and could reach $2,250 an ounce.

While the dollar strengthened after stronger-than-expected US data, heightened uncertainty created by the Fed pushed gold prices below critical levels today. While the dollar recovered from a five-month low, gold prices fell almost 2 percent to below $1,800. Thus, the precious metal experienced the worst day in the last 3 months. Today, when the price of an ounce of gold is estimated at 1,782 dollars, a gram of gold, which in recent days has broken a record of 1,084 liras, is offered for sale at 1,061 liras.

“Gold prices will suffer the most”

It is argued that if inflation remains above the US Federal Reserve’s target band, it could cause interest rates to rise longer than expected. While the Fed is pointing to a slight increase in rates in the coming months, the central bank is also warning that rates could reach much higher levels than expected.

Analysts emphasize that, according to their estimates, in such a scenario, gold prices will suffer the most. Now eyes are on the last Fed meeting in 2022. Next week, the bank will hold its last meeting of the year.

Rising interest rates have been the biggest factor affecting bullion prices this year. Because high returns on debt increased the opportunity cost of owning gold. Although gold has rebounded from the lows it hit earlier this year, economists say the outlook is still not very encouraging due to interest rate uncertainty.

record forecast

While the activity in the market increased, the multinational bank Standard Chartered shared its new forecast for gold. Unlike the giant bank, it expects the price of gold to rise. In a note to investors dated December 4, Eric Robertsen, the bank’s head of global research, said gold forecasts had risen to 30 percent. Robertsen estimates that the price of gold could reach $2,250 an ounce.