Published: Jul 11, 2026 at 08:00
The price of Gold has recovered from June's sharp sell-off, and HSBC believes the precious metal can continue to rebound even as a hawkish Federal Reserve keeps US yields elevated.
The Gold price in US Dollars (XAU/USD) traded near $4,165 on Friday, up almost 1% on the day after rebounding more than 3% since the start of July.
The recovery follows an almost 12% decline in June, when prices briefly slipped below $4,000.
Image: Gold price in US Dollars - 2 day chart
HSBC says the stronger US Dollar and higher real interest rates remain near-term headwinds, but argues that the recent correction has already priced in much of the Federal Reserve's hawkish shift.
The bank believes gold's longer-term fundamentals remain favourable despite the tougher macro backdrop, pointing to continued central-bank demand, geopolitical uncertainty and concerns over rising government debt.
HSBC argues that even if the Fed keeps interest rates higher for longer, structural demand should continue to underpin bullion.
Image: XAU/USD 6 month historical chart
The bank also expects official-sector buying to remain an important source of support, while investors are likely to rebuild positions once confidence grows that US yields have peaked.
Although HSBC acknowledges further volatility is likely in the near term, it believes gold should continue to "shine through" the current hawkish environment rather than enter a prolonged bear market.
