Banks worldwide await Fed decision, release gold pricing forecasts

Markets worldwide anxiously await the United States Federal Reserve’s (Fed) critical interest rate decision which is set to be announced Wednesday.

The Fed interest rate decision meeting will be held on Wednesday, and the critical interest rate decision will be announced at 9 p.m. Turkish time.

Analysts are certain that Fed will leave interest rates unchanged this week and next month.

After the decision, Fed Chairman Jerome Powell’s verbal guidance and timing clues on interest rate cuts will be decisive for the markets.

Before the Fed’s interest rate decision, an uneasy wait is seen in gold.

The cease-fire proposal on the Israel-Hamas war, the decline in geopolitical risks, U.S. employment figures and China’s suspension of gold purchases caused sharp declines in gold recently.

On Tuesday, gold pricing has maintained a horizontal outlook. Ounce of gold, which closed Monday with an increase of 0.75%, was traded at $2,312.

Gram gold faces decline in Türkiye

Amid the cautious course under ounce gold, gram gold prices also took shape. Although gold prices declined significantly last week, there has not yet been a reaction purchase.

Gram gold started the day at 2,402 Turkish liras. In Istanbul Grand Bazaar, gram gold was bought at ₺2,402 and sold at ₺2,420.

The statements to be made after the Fed’s interest rate decision will also be carefully monitored. Turkish analysts stated that the new movement area could be the $2,300-2,400 region in the short term.

World banks forecast gold pricing

New forecasts for gold also came from giant banks.

While the tension in the Middle East and the demand for gold by global central banks have an impact on gold prices, banks worldwide announced that they expect an increase in gold prices.

• Bank of America

Bank of America (BofA) predicted that the price of an ounce of gold will exceed $3,000 by 2025.

• Goldman Sachs

Goldman Sachs, on the other hand, raised its gold ounce price target for the end of 2024 from $2,300 to $2,700.

• JPMorgan

U.S. investment bank JPMorgan also predicted that the gold price for 2024 will be $2,315 per ounce. The bank’s expectation for the next year for the ounce of gold was $2,504.

• UBS

UBS also raised its gold forecasts to $2,500 per ounce for the end of September and $2,600 for the end of the year.

• Citi

Citi analysts predicted that gold could rise to $3,000 in 6 to 18 months. The bank’s gold forecast for 2024 increased by 6.8% to $2,350 and the 2025 forecast increased by the same percentage to $2,875.