Gold Price Forecast: XAU/USD to recover significantly by the end of the year – Commerzbank

FXStreet Insights Team FXStreet

ECB rate hike weighs only moderately on Gold price. Strategists at Commerzbank analyze the yellow metal’s outlook.

Gold market participants are likely to remain cautious

Gold slid back towards the $1,900 mark this week. This is because the core rate of US consumer prices slowed less sharply than had been hoped. The ECB’s rate hike also weighed briefly on XAU/USD.

In the market’s opinion, another Fed rate hike this year cannot be ruled out yet either. We believe that the Federal Reserve will not make any announcement next week, but that Fed Chair Powell will leave the door open to further rate hikes. This will keep the Gold price in check in the short term.

However, with economic activity likely to slow in the coming weeks as a result of the monetary tightening that has already taken place, rate hike expectations should gradually fade. Against this background, Gold is likely to recover significantly by the end of the year.

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FXStreet Insights Team

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