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Gold Value Forecast: “Tender touchdown” for US financial system would weigh on XAU/USD – Commerzbank


Rate of interest expectations are prone to proceed driving the Gold worth, strategists at Commerzbank report.

US financial knowledge needs to be a key driver of the Gold worth

The US financial system grew by 2.4% on an annualised foundation within the second quarter, and thus extra sharply than anticipated. This implies there may be nonetheless little signal of the US Federal Reserve’s aggressive charge hikes, which available in the market’s eyes will increase the probability of a ‘delicate touchdown’ for the US financial system. This view was additionally boosted by the Fed, which deserted its forecast of a US recession at its assembly on Wednesday, which noticed it enhance key charges by 25 bps as anticipated. 

That is related to the Gold worth within the sense that charge cuts within the foreseeable future shall be noticeably much less possible if no recession is forthcoming. The market’s charge minimize expectations for the approaching yr are at this level, nonetheless, fairly supportive for the valuable metallic. Consequently, US financial knowledge are prone to be watched very fastidiously over the approaching days and weeks and will subsequently be a key driver of the Gold worth.

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