Gold Price Forecast: XAU/USD to see modest weakness for the remainder of 2022, before recovering in 2023

Gold prices have declined by 3.6% year-to-date. Strategists at ABN Amro have downgraded their gold price outlook, expecting modest weakness for the remainder of 2022, before prices will recover in 2023. 

New year-end forecasts are $1,700 in 2022 and $1,900 in 2023

“We expect modestly lower gold prices for the remainder of this year. There is a crucial support area layered at $1,680-$1,700. We expect these levels to be tested again and prices could move below these, albeit only temporary. Our new forecast for the end of 2022 is $1,700.”

“For 2023, the gold price outlook is more positive. Not only do we expect the US dollar to weaken, but we also expect the Fed to start cutting rates in the second half of 2023. On top of that, we expect lower US real yields. As a result, gold prices are likely to rebound next year. Having said that, we do not believe that gold prices will set a new high though.” 

“Our new year-end 2023 forecast is $1,900.”

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