Gold leaped from a low of $1,782 in early 2022 to a high of $2,070 due to the Russian-Ukraine crisis. World tensions peaked during the 2nd week of March before falling back towards $1,925; geopolitical tensions related to the war in Ukraine moderated the price action. Strategists at TD Securities expect XAU/USD to average $1,863 this year.
“Based on the pattern of market behavior over the last several years, we see considerable volatility and expect the yellow metal to average about $1,863 this year.”
“The outlook deteriorates in the latter part of the year as central bank policy gets much more aggressive in their fight against inflation, which should see the price the yellow metal drift to modestly below low-$1,800s by year-end.”
“If the Fed does not become restrictive, the yellow metal can test the record $3,100 (in current dollars) found back in January 1980.”