Institution: The Federal Reserve Will Not Take Any Action This Year, Maintaining the Forecast of an Average Gold Price of $4,600

Odaily Odaily reports that Fitch Ratings' research arm, BMI Commodities Research, remains bullish on gold, maintaining its forecast for an average gold price of $4,600 per ounce in 2026 unchanged. The institution believes 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, posing significant downside risks for gold. However, as long as the inflationary pressures related to the Middle East conflict begin to fade as anticipated following the recent US-Iran agreement, the most likely outcome remains interest rates remaining unchanged for an extended period. Short-term gold price movements could be driven by Fed policy signals, making the precious metal vulnerable to a repricing of market expectations and a renewed strengthening of the US dollar in the near term. (Jin Shi)