OCBC Bank: Gold Still Has Medium-Term Diversification Value, but Macro Pressures May Limit Upside Potential
- OCBC Group research strategists pointed out in a report that the medium-term effectiveness of gold as a tool for asset diversification still exists, but its price may be constrained by a more severe macroeconomic environment.
- In terms of supporting factors, central banks in various countries have stated that they plan to increase their gold reserves in the next 12 months, and the continuous demand for gold purchases from official sectors may provide structural support for gold.
- However, in the short term, gold still faces macro headwinds. Investors have already priced in expectations of a Federal Reserve rate hike, and the pressure brought by rising real yields and a stronger US dollar is unlikely to be fully offset.
- OCBC expects the gold price to reach 4,360 US dollars per ounce by the end of 2026, and to rise to 4,680 US dollars by the end of the second quarter of 2027. This forecast reflects the bank's view that while gold is bullish in the medium term, its upward trajectory could be turbulent.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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