Gold Price Forecast: XAU/USD to shrug off Fed Minutes – Commerzbank
Gold price is falling towards the $1,830 mark. Tomorrow, the release of the minutes of the February 1 FOMC meeting is unlikely to provide fresh trade impetus, in the opinion of economists at Commerzbank.
Demand picks up in China and India following slide in Gold
“Market participants will be focusing on tomorrow’s publication of the minutes of the Fed’s meeting in early February. As it took place before the buoyant US labour market and inflation data that led to interest rate expectations being reassessed on the market, however, the significance of the minutes is likely to be limited.”
“Price slide seems to have pushed up Gold demand in India and China last week. The higher demand is meeting with reduced supply after Fold imports were postponed in anticipation of a possible cut in import tax that did not then materialise.
“Jewellery retailers there are replenishing their stocks following the New Year festivities. This reveals yet again how price sensitive Gold buyers are in India and China. Though this does not mean that they are able to drive prices significantly up, they can preclude or at least slow any further price fall.”
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.
