Gold Price Forecast: XAUUSD set to dive below the $1,800 level – TDS
|Gold Price eases from five-week highs of $1,879. Economists at TD Securities expect the yellow metal to give up all these gains and trend lower toward below $1,800, as policy rates rise sharply.
High inflation to drive gold down toward $1,830-24 in the short-term
“High inflation is likely to drive prices down toward $1,830-24 trading range in the short-term.”
“Longer-term, the yellow metal should trend materially below $1,800.”
“We bet that risks point to gold downside on the horizon, given energy and other price pressures in the economy.”
“While it is quite possible the Fed flakes and pulls back hikes, sacrificing price stability at the alter of full employment, it is too early to say they will introduce policy ambiguity anytime soon. For that reason, our projected correction is not a rout and this is why we have a gold rebounding thereafter next year.”
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