In their latest report on the gold market, BMO Capital Markets analysts expect gold prices to be relatively stable over the next few months and rise again above $1,700 per troy ounce by the second quarter of 2023. The bank expects prices to average around $1,680 an ounce between April and June next year, Kitco News reported, citing a bank review.
“What is interesting for us is that we assume that the price of gold will receive fundamental support until 2026. We are assuming an average gold price of $1,600 an ounce and do not expect a sharp drop in prices from today's levels,” said Rory Townsend, a Canadian bank lawyer and author of the latest gold report. “And that’s partly because of longer inflation, partly because of slower growth over the forecast period, and also because of continued heightened geopolitical risks.”
“Of course, there are still risks associated with a very tight labor market in the US, as well as the fact that inflation could rise even more. We may see a rebound in energy prices during the winter months, which could keep inflation higher for longer. But I think 4.6% should be enough to contain demand and ease some of the inflationary pressures we're facing,” Townsend said.