Gold Price Forecast: XAUUSD under pressure despite rising recession odds – TDS

FXStreet Insights Team FXStreet

Gold trades with a mild negative bias for the fourth successive day on Thursday. Despite increasing recession fears, the yellow metal is set to remain under downside pressure, economists at TD Securities report.

Liquidity is being sapped from global markets

“Gold prices are under pressure despite rising recession odds, in contrast to recent price action pointing to safe-haven flows supporting the yellow metal.”

“Gold prices have disconnected altogether from market pricing for Fed hikes over the past month, and have instead grown their relationship with the USD, pointing to a smaller magnitude of idiosyncratic flows for the yellow metal.”

“Liquidity is being sapped from global markets, and gold flows have not been spared.”

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FXStreet Insights Team

FXStreet

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