Gold Price Forecast: XAU/USD to challenge its record of $2,089 before year-end – MUFG

Gold has hit a six month high. Economists at MUFG Bank analyze the yellow metal’s outlook.

Gold posed for a run to a record as seasonality takes hold

Bullion’s ascent has been sufficiently acute and powerful that a challenge of its record of $2,089 set in August 2020 seems inevitable before year-end.

With a new month and the start of the Christmas season now in sight, the precious metal tends to rally in December. In the past five years, it has made monthly gains of no less than 3%, which at current levels would push it beyond its mid-pandemic record. 

Meanwhile, attempts by traders to front-run January – a historically even stronger period for Gold thanks to buying for China’s Lunar New Year – seems a little more plausible.