ANZ raises gold price forecast to $3,600 an ounce

The Australia and New Zealand Banking Group (ANZ) predicts gold to hit $3,600 per ounce by the year-end. The bank has also upgraded its price forecast for the next 6 months from $3,200 to $3,500 per ounce.

ANZ expects gold to firm in the foreseeable future due to the risks of a deepening recession and rising inflation. Uncertainty in the outlook for interest rates, the geopolitical situation, and the state of supply chains will also work in gold's favor.

However, a de-escalation of the US-China tariff standoff may mitigate the risks of a collapse in US economic growth and put pressure on gold prices.

Moreover, if the Federal Reserve (Fed) decides to keep its monetary policy unchanged despite the market's legitimate expectations of a rate cut, this will be another deterrent for gold prices.

Anyway, since the beginning of the year, the gold price has surged by 27.29%, reaching a new all-time high of over $3,300 per ounce, as geopolitical instability has reignited demand for safe-haven assets.