Precious metals have softened since March due to rising interest rates and a strong greenback, which have outweighed inflation. Although the market is expected to face some headwinds in the near term, the ongoing geopolitical crisis in eastern Europe and inflation remaining persistently high might bolster the market.
Despite being weighed down by soft demand, gold has shown resilience on the backs of robust Central Bank purchases. Gold prices are expected to end the year at around $1,800 an ounce. Carsten Fritsch, the precious metals analyst at Commerzbank, believes that the ending of the Fed’s rate hike cycle could boost the yellow metal.
