The hawkish stance of central banks is the headwind for gold investments but geopolitical conflicts could enhance the safe-haven appeal of the yellow metal. All in all, strategists at ANZ Bank expect XAU/USD to hover around $1,800 by the end of the first quarter.
A stronger USD is a headwind but elevated inflation could mitigate the impact
“The backdrop for gold is deteriorating as central banks become more hawkish. However, elevated inflation and geopolitical risk are partially offsetting the impact of tightening monetary policies.”
“Retail investments and physical offtake have been resilient. We believe gold will trade at $1,800/oz towards the end of Q1 2022.”
See – Gold Price Forecast: XAU/USD to break under $1,745 and start a sustained downtrend in July – TDS
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD clings to gains above 1.0800 amid weaker US Dollar
EUR/USD is trading sideways above 1.0800, consolidating gains in early Europe. The pair is struggling, despite a better risk tone and a broadly weaker US Dollar. Growing recession fears are capping the upside in the pair. ECB-speak awaited.
GBP/USD climbs above 1.2300 ahead of Bailey
GBP/USD has scaled above the critical resistance of 1.2300 amid a cheerful market mood on Tuesday. The US Dollar drops alongside the US Treasury bond yields amid receding global banking fears and a dovish Fed policy outlook. All eyes on Bailey's testimony.
Gold bears prod $1,960 support as bank fears ease
Gold price drops to a fresh intraday low of $1,955 as bears struggle to retake control, after an earlier retreat, during Tuesday’s European session. The bright metal’s latest weakness could be linked to the market’s optimism.
Ethereum (ETH) options traders turn bearish ahead of the token unlock
Ethereum is holding steady above the $1,700 level despite slight bearish sentiment among options traders. Analysts have noted a rise in open interest in Ethereum, as co-founder Lubin assures that the altcoin is not a security.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.