Federal Reserve: No action is expected this year; the firm maintains its forecast of an average gold price of $4,600 for the year.
Svmuu News: BMI Commodities Research, a research arm of Fitch, remains bullish on gold and has maintained its forecast of an average gold price of $4,600 per ounce for 2026. The firm also believes that the Federal Reserve will not take any action on interest rates this year.As noted last week, Federal Reserve’s hawkish tone has fueled expectations of interest rate hikes, exposing gold to significant downside risks. However, as long as inflationary pressures related to the Middle East conflict begin to subside as expected following the recent U.S.-Iran agreement, the most likely outcome remains that interest rates will stay unchanged for an extended period.Gold’s short-term price movements may be driven by policy signals from Federal Reserve, and in the near term, the precious metal remains vulnerable to a repricing of market expectations and a resurgence in the U.S. dollar. (Jin Shi)
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