Gold Price Forecast: XAU/USD may shine again, seen at $1,850 by end-2023 – Commerzbank


Gold price has had an eventful year, even though by the middle of December it is almost back at the level it was at the beginning of the year. Economists at Commerzbank expect the yellow metal to fall to $1,750 earlier next year before trending back higher towards $1,850 by end-2023.

Gold should be supported by the weakening of the USD

“We expect the Gold price to initially fall back towards $1,750 until it is clear that the Fed's cycle of interest rate hikes is over.” 

“According to Fed Fund Futures, the market still sees the interest rate peak at slightly below 5%. In the short term, there is thus a need for an upward adjustment of interest rate expectations, which should weigh on Gold.”

“After what is expected to be the last interest rate hike in March, a period of unchanged rates is likely to follow before the Fed cuts the key rate again toward the end of 2023 in view of a weak economy and lower inflation. The Fed, on the other hand, is not yet forecasting this. As soon as the Fed also adopts this view, Gold should rise again. This should be the case in the second half of next year.” 

“Gold should also be supported by the weakening of the US Dollar expected by our currency strategists.”

“We expect XAU/USD to rise in the second half of the year to $1,850 by the end of 2023.”

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

GBP/USD holds above 1.2700 after UK inflation data

GBP/USD holds above 1.2700 after UK inflation data

GBP/USD fluctuates above 1.2700 in the early European session on Wednesday. The data from the UK showed that annual inflation, as measured by the change in the Consumer Price Index, declined to 2% in May from 2.3% in April, limiting Pound Sterling's upside.

GBP/USD News

EUR/USD seems vulnerable while below 1.0800 confluence support breakpoint

EUR/USD seems vulnerable while below 1.0800 confluence support breakpoint

EUR/USD trades with a mild negative bias, though the downside remains cushioned. September Fed rate cut bets keep the USD bulls on the defensive and lend support. The technical setup favors bearish traders and supports prospects for further losses.

EUR/USD News

Gold buyers lack fresh impetus amid holiday-thinned trading

Gold buyers lack fresh impetus amid holiday-thinned trading

Gold price is consolidating the previous recovery early Wednesday, lacking a fresh fundamental or technical impetus for further upside. The Juneteenth holiday in the United States is likely to keep liquidity thin around the US Dollar, leaving Gold price sidelined. 

Gold News

Bitcoin technical indicators signal bullish momentum

Bitcoin technical indicators signal bullish momentum

Bitcoin price action shows a bullish divergence on a momentum indicator. Ethereum price finds support around $3,362 price low from Friday. Ripple price faces rejection by its daily resistance level of $0.499 level.

Read more

Soft US retail sales pull Dollar, bond yields lower

Soft US retail sales pull Dollar, bond yields lower

Softer-than-expected US Retail Sales pulled the US 10-year bond yield down to 4.22% (4.27%). A good US Treasury auction result lifted bond prices, pushing yields lower.

Read more

Forex MAJORS

Cryptocurrencies

Signatures