Gold Price Forecast: The war will continue to drive haven flows toward XAU/USD – ANZ

Gold threatened to break through $2,000 as investors flocked to haven assets. Strategists at ANZ Bank analyze the yellow metal’s outlook.

Further gains also hinge on the Fed’s rate cycle nearing an end

The precious metal has gained more than 8% since Hamas attacked Israel. While the war will continue to drive haven flows toward Gold, further price gains also hinge on the Fed’s rate cycle nearing an end. This will result in retreating US yields, reducing the opportunity cost of Gold. 

Demand from the physical market is also strong, from both central banks and consumers.