Ongoing selling pressure in US equity markets continues to weigh on gold prices as traders liquidate positions to raise capital. Prices may decline further. Standard Chartered analysts suggest that bullion will remain the primary safe-haven asset during periods of economic uncertainty.
The organization's strategists forecast gold prices to average approximately $3,300 per ounce in the second quarter of this year.
Although gold has dipped below $3,000 per ounce, it has significantly outperformed the S&P 500 index and other commodities, according to Standard Chartered.
As the organization notes, the macroeconomic backdrop for gold remains favorable despite the recent sell-off. The metal's price dynamics have been relatively stable, and under current conditions, bullion remains an attractive investment as the risk of a global recession continues to rise.