Gold has generally been fluctuating between $1,800 and a good $1,850 since mid-May. In the view of strategists at Commerzbank, nothing much is likely to unsettle the gold market in any serious way next week.

Gold will find it difficult to recover unless there is a reversal of ETF flows

“Gold is currently being held in check on two sides: higher interest rates and the firm US dollar are limiting gold’s upside potential as a non-interest-bearing investment, while the high inflation rates are preventing gold – in its capacity as a store of value – from sliding. This is not likely to change next week either, which is when the Fed will be publishing its latest meeting minutes.”

“The minutes will doubtless reflect the Fed’s determination to regain control of the high inflation by implementing sizeable rate hikes.”

“ETF investors have been turning their backs on gold again of late and selling shares. Unless there is a reversal of ETF flows, the gold price will likely find it difficult to recover.”

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD battles to retain the 0.7100 threshold

AUD/USD battles to retain the 0.7100 threshold

AUD/USD hovers around the 0.7200 level after reaching a two-month high of 0.7136 on Thursday, following the release of the US Producer Price Index. The report gave further signs of easing inflationary pressures in the world’s largest economy.

AUD/USD News

EURUSD eases once again from around 1.0360

EURUSD eases once again from around 1.0360

The EUR/USD pair retreated from the 1.0360 price zone for a second consecutive day and trades around 1.0320. Easing US indexes gave the dollar some room to recover the ground lost these days.

EUR/USD News

Gold losing bullish potential below $1,800

Gold losing bullish potential below $1,800

Spot gold struggles around the $1,790 level, still unable to find a clear directional trend. The bright metal has been hovering below the $1,800 threshold ever since the month started, with attempts to run beyond the level being quickly reverted.

Gold News

Dogecoin proponent Mark Cuban faces class action lawsuit for promoting Voyager

Dogecoin proponent Mark Cuban faces class action lawsuit for promoting Voyager

Mark Cuban was slammed with a lawsuit for leveraging his years of experience to lure customers into investing their savings in Voyager’s services. Cuban is accused of promoting the bankrupt crypto brokerage firm Voyager Digital. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures