Gold's Next $1,000 Move Likely Higher as Fed Hawkishness Peaks, Says State Street's Doshi

According to Aakash Doshi, Head of Gold Strategy at State Street Asset Management, in an interview with Kitco News, gold's next $1,000 move will likely be higher as the Federal Reserve's tightening bias appears to have reached peak hawkishness. Doshi said market expectations surrounding the Fed's monetary policy stance are overly aggressive, noting that "the markets have done a lot of the Federal Reserve's work already." Gold is currently consolidating around $4,000 an ounce, with ten-year real yields trading near 2.4%. Doshi reiterated his base-case forecast for gold to trade between $4,750 and $5,500 over the next six to nine months, with potential to reach $5,000 by the first half of next year if two-year yields fall below 4%.

Doshi identified July's nonfarm payrolls report next week as the key catalyst for gold's next move, noting that June's employment report showed only 57,000 jobs created, significantly missing expectations. "If that data disappoints, then you could see markets reprice year-end rate hike expectations really quickly," he said.