Gold price returned to $1,737 mark
listings came out of the negative zone for the first time in four days as the dollar continues to be in demand against a backdrop of strong economic activity in the U.S. manufacturing sector. The revised decline in government bond yields and optimism about the incentives of the Joe Biden administration are not saving gold buyers. In the short term, the current price rebound may continue against the backdrop of a further fall in profitability, which could lead to a fall in the dollar. Fitch lowered its gold price forecast for this year as precious metals prices are approaching their lowest level in seven months. Analysts changed their estimate to $1,780 an ounce. At the same time, it should be noted that gold prices remain relatively high, despite the current decline. Fitch also said markets would receive support between March and April because inflation is likely to rise. This will be temporary and prices are expected to fall on the horizon for 6 to 12 months. Investor demand for gold has also fallen significantly in recent months after a rally in the first half of 2020 and a price peak in August. Fitch experts maintained their forecasts for 2022 and the following years, expecting precious metals prices to fall in bond yields and interest rates.
In our forecast, we expect gold to rise further to 1740, 1745 and $1750 an ounce.