Gold is on the cusp of a significant upward movement, potentially breaking above the $5,200 mark. According to ANZ Bank, the outlook for the precious metal remains decidedly bullish, supported by a confluence of factors. While the core drivers for gold have persisted since last year, ANZ highlights a crucial new element: a "less crowded" investor positioning following a profit-taking phase in late January.
ANZ's analysis points to robust underlying fundamentals. They anticipate accommodative monetary policy to extend through Q4 2026. Specifically, they forecast the Federal Reserve resuming interest rate cuts in Q2, likely in June, with an additional cut in Q4, bringing the terminal rate down to 3% from the current 3.75%. This supportive monetary environment is expected to benefit non-yielding assets like gold.
Furthermore, renewed geopolitical tensions, particularly between the US and Iran, are poised to reignite gold's appeal as a safe-haven asset. Persistent volatility in the geopolitical landscape is also implied by ongoing Russia-Ukraine talks. Economic risks continue to linger, with markets yet to fully digest the impact of increased US tariffs. Simultaneously, financial risks are escalating, fueled by concerns surrounding the AI-driven equity rally.
In the face of these uncertainties, ANZ views gold as a compelling hedge against market risks. The recent profit-taking has created space for investors to establish fresh long positions, suggesting ample room for upward price movement. For traders looking to capitalize on this bullish outlook, exploring forex trading opportunities on gold can be beneficial. And with cashback.day, you can significantly reduce your trading costs on every successful trade, making your investment even more rewarding.