Gold Price Forecast: XAU/USD short outlook looks strong – ANZ
|Gold extended gains following the collapse of Silicon Valley Bank. The shifting expectations of US federal fund rates (FFR) are likely to see strong support for haven assets such as Gold, economists at ANZ Bank report.
Strong demand for safe haven assets
“The precious metals allure as a safe haven asset saw strong demand from investors. This was aided by a sharp reassessment of the direction of Fed policy. The market’s expectations of smaller rate hikes saw the 10y yield on Treasuries fall to a six-week low, while the USD erased its gains for the year.”
“The short outlook for Gold looks strong. The precious metal has jumped above its 50-Day Moving Average, signalling a change in momentum. With investor allocation relatively low, we expect this to continue.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.