Gold Price Forecast: XAU/USD could drop into the low $1,800s – TDS

FXStreet Insights Team FXStreet

Gold is suffering. XAU/USD fell as much as 0.9% on Thursday to just $1,860 following three previous sessions of declines. Strategists at TD Securities analyze the yellow metal’s outlook.

Gold to recover and surge to the $2,100s in the first half of next year

Given positioning, technical and energy price pressures, it would not be surprising to see Gold drop into the low $1,800s if inflation moves higher and economic data remains firm. The upcoming core PCE deflator may be a catalyst for downside.

However, we expect Gold to recover and surge to the $2,100s in the first half of next year, as the Fed pivots to a more dovish policy and physical buying remains strong.

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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 trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.