HSBC cuts gold price forecasts for this year and next, saying rate hikes and high oil prices may continue to pressure gold.

HSBC on Thursday cut its gold price forecasts, citing expectations of further U.S. interest rate hikes and rising oil prices that could pressure gold in the near term. However, the bank believes the long-term factors supporting gold prices remain in place. HSBC now expects gold to average $4,490 per ounce in 2026, down from its previous forecast of $4,560, and lowered its 2027 average price forecast to $4,825 per ounce from $4,925. HSBC said market expectations for further U.S. rate increases and rising bond yields will continue to weigh on gold prices, as this erodes the appeal of the non-yielding asset. The bank's economists expect the Federal Reserve to raise rates again in December this year.