The third quarter saw a decline in gold prices of 8.3%, bringing the year-to-date loss to -9.0%. However, Erste Group Research strategists predict that XAU/USD will stabilize around $1,700 in the upcoming quarter.
According to Erste Bank, the price of gold is supported by an uncertain economic climate. A factor affecting the performance of the gold price is the strong US dollar as well as the growing US Fed funds rate and yields. However, the medium-term demand for gold should be maintained by the slowdown in global economic growth and the decline in corporate earnings growth. High geopolitical risks continue to be a significant factor that helps performance.
Erste Bank stated, “We expect the price to increase to about $1,700 in the fourth quarter.”
15.7 million clients are served by Erste Group Bank AG (Erste Group), an Austrian financial services provider with more than 2,700 branches in seven countries in Central and Eastern Europe.
