The Federal Reserve will not take any action this year and will continue to maintain its forecast for gold’s average price this year at $4,600.

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Fitch Group's BMI commodity research department remains bullish on gold, maintaining its forecast of an average gold price of $4,600 per ounce in 2026 unchanged. The institution also believes that the Federal Reserve will not take any action on interest rates this year. As pointed out last week, the Fed's hawkish tone has fueled rate hike expectations, which poses significant downside risks for gold. However, as long as inflation pressures related to the Middle East conflict begin to ease as expected following the recent US-Iran agreement, the most likely outcome remains that interest rates will stay unchanged for an extended period. Short-term gold price movements may be driven by Fed policy signals, and in the near term, precious metals are vulnerable to market expectation repricing and a resurgent US dollar.
XAU-0.19%
XAUUSD1.57%
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