Gold Price Forecast: XAU/USD to remain above $2,000 – Commerzbank
|Gold price is holding its own at $2,020-2,030 of the US inflation data. Economists at Commerzbank expect the yellow metal to remain elevated.
No scope for the Fed to implement rate cuts this year
“According to the Fed Fund Futures, the key rate expected at the end of the year is approx. 4.4%. It is doubtful whether the inflation figures will be able to shake this view.”
“We expect that the headline rate will have remained at 5% in April and that the core rate will have fallen slightly to 5.5%. This would still leave inflation well above the US Fed’s target level. This confirms our view that there is no scope for the Fed to implement rate cuts this year. It will probably take some time before the market likewise adopts this view, however. Gold is therefore likely to remain above the $2,000 mark.”
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.