HSBC Analysts Forecast Additional Gold Upside by Year-End

Despite pressure from higher US yields and a firm dollar, HSBC experts Willem Sels and Lucia Ku forecast additional gains for gold prices by year-end. Central bank purchases, ETF inflows and diversification demand should underpin the metal over the medium term, even if near-term trading stays constrained.

Gold failed to rally amid Middle East tensions and tracked equities instead. Analysts view US Treasury yields as the main price driver, since rising yields increase the opportunity cost of holding a non-yielding asset. The bank still regards gold as an effective portfolio hedge.

James Steel from HSBC highlighted robust institutional buying from China, where the Shanghai premium stands at $20 and the People’s Bank of China added 8.1 tonnes. Gold acted as insurance, supplying liquidity when equities declined amid rising oil prices and yields.