ING: Gold will strengthen slightly in 2023, with the Fed’s policy easing

This year, gold prices have been under a serious pressure due to the strengthening U.S. dollar and monetary policy tightening by the Federal Reserve (Fed). According to Internationale Nederlanden Groep (ING) economists, gold will manage to recover in the upcoming year as the Fed’s policy easing begins. 

This forecast is driven by falling gold amid interest rate hikes. The precious metal is likely to continue to decline as long as the U.S. central bank adheres to its hawkish position. Regarding this, any hints at easing the tightening cycle might support gold prices. However, signs of a significant decline in inflation have to be observed for this prediction to happen.

If in the second quarter of next year, the expected easing of the Fed’s policy occurs, gold prices will begin to rise. ING analysts believe that gold might reach the level of $1,850 by the end of 2023.