Gold Price Forecast: XAU/USD to settle above $2,000 if the Fed show willingness to cut rates – TDS
Gold traded briefly above the $2,000 level last week. Strategists at TD Securities analyze the conditions to see XAU/USD to see a sustained break above $2,000.
Investor appetite for Gold is likely to improve
“The brewing bank crisis which started with SVB, which has now migrated to European institutions, has prompted investors to aggressively increase Gold length.”
“With credit conditions tightening as the result of various bank sector difficulties, the Fed, and even more so money managers, have judged that the Fed funds will not need to increase as much as previously thought.”
“In order for the yellow metal to keep sustained new highs above $2,000, money managers will need to see the Fed show willingness to cut rates even if inflation remains far off the two percent target.”
Author
FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
