Gold analysis from HSBC and long-term support factors

In a report prepared by HSBC Asset Management, gold's long-term outlook was assessed positively, with its safe-haven status, portfolio diversification role, and store-of-value function highlighted as three key support factors.

Long-Term Support Factors for Gold

HSBC made positive evaluations regarding the long-term outlook of gold in the precious metals market and drew attention to three main factors supporting this outlook.

The report stated that these factors distinguishing gold are its safe-haven feature, its role as a portfolio diversification tool, and its store-of-value function.

Gold Prices and Market Data

According to market data in the HSBC report, gold was trading at $4,384 per ounce as of September 18.

Based on the same data, gold recorded an increase of 0.8 percent over the past week, 1.1 percent over the past month, and 4.1 percent over the past three months.

The annual increase rate of the precious metal stood at 20.3 percent.

Developments in the Oil Market

It was emphasized that investors should closely monitor the scale, speed, and impacts of the recent shock in the oil market.

It was reported that volatility in oil prices could affect the balance between growth and inflation, corporate profitability, and risk appetite in the markets.

Inflation and Interest Rate Expectations

It was conveyed that energy- and geopolitically driven supply shocks push inflation upward, while strong growth and a robust labor market provide room for central banks.

It was assessed that this environment could cause inflation to remain more volatile and higher, leading interest rates to stay high for a longer period.