ANZ puts US$2080/oz price target on gold, and can silver keep outperforming?

“The impact of the Fed’s aggressive tightening over the past year is beginning to show,” they say.

“The Fed’s hiking trajectory has been guided by US CPI inflation and labour data, which are showing signs of easing.”

Despite this, Fed officials remain divided on the timing of a pause in rate hikes, Hynes and Kumari say.

“Currently, the market is pricing a 25bp hike in the next FOMC meeting. We expect rate hikes of 25bp in May and June 2023,” they say.

“If the Fed pauses earlier than the market expects, it could quickly amplify gains in gold.

“We see gold reaching USD2,080/oz in next the 12 months.”