Gold Price Forecast: XAUUSD to cheer the return of haven seekers – ANZ

FXStreet Insights Team FXStreet

Rising interest rates and a stronger US dollar have weighed on gold prices recently. Nevertheless, a heavy sell-off in equity markets, amid deteriorating economic growth prospects, should see haven seekers return to gold, economists at ANZ Bank report.

Stronger USD weighing in gold prices

“A sell-off in financial markets failed to attract safe-haven flows toward gold in any meaningful quantities. Prices fell briefly below $1,800, amid rising yields and an appreciating US dollar. An aggressive Federal Reserve rate hike and economic growth concerns saw the US dollar hitting a multi-year high.”

“A deteriorating macro-economic outlook along with higher inflation should still be supportive for gold, and the rising risk of underperformance in equity market’s has enhanced its risk-diversifier appeal.”

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FXStreet Insights Team

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