Gold Prices Sink as Hawkish Fed Policy Boosts Yields, But Forecast to Rebound in 2024

Gold prices have fallen over 11% from 2022 highs as aggressive Fed policy pushes bond yields up.

ING has lowered its gold price forecasts for Q4 2022 and full year 2023 due to continued Fed hawkishness.

ING strategist expects gold prices to start recovering in 2024 as Fed stops raising rates and starts cutting again.

ING sees gold averaging $1950/oz in Q1 2024 assuming Fed begins rate cuts and dollar weakens.

Despite near-term weakness, ING remains optimistic on gold rallying above $2000/oz in 2024 and higher in 2025.