Commerzbank AG sees gold prices ending the current year at about $1,800 per ounce, down from its previous estimate of $2,000, Kitco News reported, citing a report released on Aug. 22.
The German bank also expects prices of the precious metal to end 2023 at $1,900 an ounce, compared to its earlier forecast of $2,000.
Carsten Fritsch, precious metals analyst at Commerzbank, said “gold is still the best performer this year compared to other asset classes,” despite the rising interest rates and surging momentum in the US dollar.
"Gold is currently trading 4.5% below the level at the beginning of the year. In the case of US bonds, the corresponding loss amounts to 9.5% due to the sharp rise in yields, if the T-Note future is used as a reference. The equity markets have lost around 14% since the beginning of the year as measured by the MSCI World, the bitcoin price even more than 50%," he added.
In the short term, according to Fritsch, gold may come under pressure again as the US Federal Reserve is set for further interest rate hikes until the end of the year.
On the other hand, Commerzbank lowered its silver price target to $20.50 an ounce, compared to its prior estimate of $24. Fritsch stated that prices could surge to $25 per ounce in 2023, down from the initially anticipated $27.
The bank lowered its year-end target price for platinum to $1,000 an ounce, below the previously projected $1,050.
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