Gold to peak H1 2025 - HSBC forecasts continued bullion strength

HSBC projects gold prices will reach new highs in the first half of 2025, viewing current weakness as a temporary setback in the precious metal's upward trajectory. The bank's analysts cite persistent inflation concerns, geopolitical tensions, and central bank gold accumulation as key drivers supporting prices above $2,800 per ounce. Despite this week's 0.8% pullback to $2,742, HSBC maintains its bullish outlook based on structural demand factors. The forecast suggests continued dollar weakness and lower real yields will enhance gold's appeal as a portfolio hedge. Central banks, particularly in emerging markets, have accelerated gold purchases, adding 1,037 tonnes in 2023. Technical analysis indicates strong support at $2,700, with momentum indicators suggesting the current consolidation phase may provide an attractive entry point. HSBC's projection implies potential upside of 5-7% from current levels, making gold an attractive proposition for forex traders seeking safe-haven exposure.