Gold Price Forecast: XAU/USD to profit as inflation concerns surface – Commerzbank
|Gold price climbed by 3.5% for a time on Tuesday to reach $2,070, coming to within a few dollars of its August 2020 all-time high. Renewed inflation concerns are behind this move, strategists at Commerzbank report.
Gold remains very popular with ETF investors
“We believe that the upswing is due to renewed inflation and economic concerns now that the US has imposed an import ban on Russian energy sources. Many market participants appear to fear that this will push energy prices even higher, which will fuel inflation on the one hand and weigh on the economy on the other.”
“The market-based inflation expectations in the US have risen considerably in recent days, causing real interest rates to slide even deeper into negative territory. Gold is likely to have profited from this.”
“Gold remains very popular with ETF investors: the gold ETFs tracked by Bloomberg registered inflows of over 22 tons yesterday.”
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