Gold Price Forecast: XAU/USD to continue rising on further sanctions against Russia – Commerzbank
Gold gained by over 1% to reach a good $1,940 on Wednesday. Strategists at Commerzbank expect the yellow metal to extend its advance as critical NATO Summit on Ukraine could result in further sanctions against Russia.
Gold in demand as safe-haven and store of value
“The gold ETFs tracked by Bloomberg have registered inflows of nearly 33 tons this week. Inflows since the beginning of the month have totalled over 150 tons. In all likelihood, this month will be one of the most robust ever in terms of inflows.”
“The ongoing high safety needs of market participants are probably behind the buying interest, as the war in Ukraine is continuing unabated and the West may well agree on new sanctions against Russia today.”
“A high-level NATO meeting will be taking place today in Brussels, its main focus being on Russia. Further sanctions could fuel the inflation expectations of market participants, which would benefit gold in its role as a store of value. The gold price is therefore likely to continue rising for the time being.”
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FXStreet Insights Team
FXStreet
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