Gold Price Forecast: XAU/USD not losing its shine – ANZ
Gold traded above $1,900 despite the recent rise in US bond yields and the USD. Economists at ANZ Bank analyze the yellow metal’s outlook.
Gold maintains its resilience
While the US Federal Reserve’s ‘higher rates for longer’ narrative gains momentum in response to strong economic data, we see these headwinds having limited impact on Gold over the coming months.
Central bank gold purchases, healthy demand for physical Gold and economic growth risks are cushioning the impact of rising rates. Our view of the USD’s long-term bearish trend is unchanged, and this could be an ongoing tailwind as it shares a negative relationship with Gold.
We believe investors will increase exchange traded funds (ETF) holdings for Gold as the Fed nears the end of its rate hiking cycle. A revival in investment demand will be crucial for Gold to trade above $2,000 in 2024.
Reprinted from FXStreet_id，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.