Gold Price Forecast: XAU/USD in correction mode – Commerzbank

Correction of the Gold price – what is going to happen next? Strategists at Commerzbank note that interest rate expectations are still the main factor driving the yellow metal.

First minor rate cut is now expected only at the end of the fourth quarter

“Interest rate expectations are still the main factor driving the price. The interest rate peak, as reflected in the Fed Fund Futures, is now at above 5% and is therefore more in line with recent comments by numerous Fed officials. Furthermore, this interest rate level is set to remain in place until into the late autumn, according to the Fed Fund Futures.” 

“The first minor rate cut is now expected only at the end of the fourth quarter, rather than already in the summer. This also tallies more closely with the Fed rhetoric, which has so far excluded the possibility of rate cuts this year.”