Gold Price Forecast: A continued XAU/USD recovery is unlikely in the short term – Commerzbank

FXStreet Insights Team FXStreet

Gold pushed back above $2,000 after US Retail Sales came in softer-than-expected. Economists at Commerzbank analyze the yellow metal’s outlook.

The ongoing ETF outflows are a further negative factor

Expectations of near-term interest rate cuts by the Fed have dwindled significantly once again following the inflation data. As a result, US bond yields rose significantly and the US Dollar appreciated, both of which are negative for Gold.

The ongoing ETF outflows are a further negative factor. According to Bloomberg, these have already amounted to 76 tons since the beginning of the year. Most recently, there were outflows on 20 out of 21 trading days.

The Gold price rose again on Thursday to $2,000 following weaker US Retail Sales data. However, a continued price recovery is unlikely in the short term.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD stays well bid beyond 1.1700

EUR/USD keeps the bid tone in place toward the end of the NA session on Tuesday, trading well north of the 1.1700 barrier on the back of the intense decline in the US Dollar, all amid the resurgence of the “Sell America” trade. Moving forward, investors’ attention will be on the release of US PCE data on Wednesday.

GBP/USD eases from tops, back to 1.3460

GBP/USD is extending its winning streak into a second session, now surrendering some gains and receding toward the 1.3460 area on Tuesday. Cable’s rebound remains propped up by the persistent selling pressure on the Greenback, while the British Pound appears, for now, largely unfazed by the mixed signals from the UK labour market.

Gold conquers the $4,700 mark on Trump’s threats

Gold builds on Monday's gains and hits a new record high around $4,760 per troy ounce on Tuesday. Escalating geopolitical tensions and growing fears of deepening trade conflicts, alongside the broad-based selling pressure surrounding the US Dollar continue to fuel the yellow metal’s rally.

Bitmine scoops additional ETH, receives approval to increase authorized shares

Ethereum (ETH) treasury firm Bitmine Immersion Technologies (BMNR) increased its stash to 4.2 million ETH after acquiring 35,628 ETH last week. The firm's holdings represent 3.48% of the total ETH circulation, just 1.52% shy of its goal to acquire 5% of the supply.

Greenland tariffs: What happened, and how to position for the new Europe risk premium

Over the weekend, President Trump threatened a new round of tariffs on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the UK, with reporting flagging 10% from February 1 and a possible step-up later.

Crypto Today: Bitcoin, Ethereum and XRP extend correction as rising geopolitical tensions fade risky sentiment

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) prices are extending their losses on Tuesday as risk-on sentiment fades amid rising geopolitical tensions over Greenland.