Gold value stays beneath stress after Fed assembly. Economists at Commerzbank analyze the yellow steel’s outlook.
Upside potential for XAU/USD within the medium time period
The principle issue weighing on Gold is presumably the expectation of rates of interest remaining larger for longer after the Fed made pretty hawkish remarks final week. That is additionally evident within the marked appreciation of the USD. Nevertheless, we’re nonetheless sceptical about whether or not the Fed will actually hike its rates of interest even additional within the autumn on the one hand, and on the opposite whether or not the present view of many market contributors, specifically that the US economic system will expertise a ‘mushy touchdown’, will show correct.
We proceed to see upside potential if something for XAU/USD within the medium time period. Within the brief time period, nevertheless, Gold might properly make a renewed bid for the $1,900 mark if inflation fears enhance in response to the latest sharp rise in oil and gasoline costs once more and if on the identical time, the US economic system continues to carry out pretty robustly for now.