The precious metal gold has long been seen as a safe haven asset, and its value is often used as a barometer for the health of the global economy. Recently, the Australian and New Zealand Banking Group (ANZ) released a forecast predicting that the XAU/USD gold price will increase in the second half of the year, due to the Federal Reserve’s decision to keep interest rates on hold.
The ANZ report noted that gold prices have been on a steady rise since the start of the year, and that this trend is likely to continue. This is largely due to the fact that the Federal Reserve has decided to keep interest rates at their current level, which is seen as a sign of economic stability. This stability has led to investors seeking out safe haven assets such as gold, which has seen its value increase.
The ANZ report also noted that gold prices are likely to remain supported by geopolitical uncertainty, as well as increasing demand from central banks. Central banks around the world have been buying up gold as a way to diversify their portfolios and hedge against potential risks. This increased demand has helped to drive up gold prices, and is likely to continue in the second half of the year.
In addition, the ANZ report noted that gold prices could be further supported by a weaker US dollar. A weaker US dollar makes gold more attractive to foreign investors, as it increases the purchasing power of their currency. This could lead to further investment in gold, which would help to drive up prices.
Overall, it appears that the ANZ forecast is correct, and that gold prices are likely to continue to rise in the second half of the year. This is due to a combination of factors, including the Federal Reserve’s decision to keep interest rates on hold, increased demand from central banks, and a weaker US dollar. As such, investors should consider adding gold to their portfolios in order to take advantage of this trend.
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