WGC expects gold price to remain supported, cites rangebound bond yields & weaker dollar

WGC is the The World Gold Council, a gold lobby group. More on them below.

The group says its expects central banks in developed markets are nearing the conclusion of their tightening cycles. And that market consensus is that the US will have a slight recession in late 2023 and that developed markets would experience slow expansion. Investors are concerned that a hard landing may still be in store given the historical gap between monetary policy and economic performance.

Given this background and the fact that gold experienced positive returns in H1, the WGC anticipates that gold will continue to be supported by rangebound bond yields and a lower dollar. If economic conditions worsen, gold investment demand should increase. In contrast, a soft landing or significantly stricter monetary policy can lead to disinvestment.

More at their update report.

The World Gold Council

  • is the market development organisation for the gold industry
  • Our purpose is to stimulate and sustain demand for gold, provide industry leadership, and be the global authority on the gold market.

This article was written by Eamonn Sheridan at www.forexlive.com. Source