Gold price rapidly recouped its initial losses yesterday and climbed to over $1,930. XAU/USD is trading a few dollars lower this morning. Still, economists at Commerzbank see the yellow metal resilient amid increased real interest rates.
Gold price holding its ground
“The EU and the US are preparing further sanctions against Russia, which is apparantly making market participants more cautious.”
“The firm US dollar and higher real interest rates appear to be precluding any further rise in the gold price at present.”
“The market seems to believe that the Fed will succeed in regaining control of the current very high inflation by raising interest rates. This makes the yellow metal less attractive as an alternative investment. The fact that gold is holding its ground despite the increased real interest rates is a sign of strength.”
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