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Despite gold’s recent slump, CIBC Capital Markets still expects the yellow metal to reach new heights this year, forecasting prices to average $3,600 per ounce in the second half.
Behind the bullish forecast is “a banquet of uncertainty around the world” boosting the appeal of alternative reserve assets, according to analysts led by Anita Soni.
Amongst the key drivers cited by Soni’s team are expectations for lower interest rates, geopolitical uncertainty and continued stockpiling by central banks.
“We continue to expect a positive macroeconomic setup for gold,” Soni wrote in a report last week. “We believe [US] rate cuts are likely and it’s a matter of ‘when and how fast’, and not ‘if.’”
“Geopolitical tensions in the Middle East and Russia remain elevated,” she added. “All this uncertainty has led to the acceleration of de-dollarization, supporting gold…
