Gold Value Forecast: XAU/USD to sink towards $1,800 in Q2, rising to $1,950 by year-end – Commerzbank

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Gold is benefiting from the market turmoil. But when the Fed sees an extra want for motion to fight inflation, Gold is more likely to shed a few of its newest positive factors once more, economists at Commerzbank report.

Market ought to as soon as once more begin betting on price cuts in H2

“The market now solely expects the Fed to hike charges to five% by Might, after which price cuts are envisaged till the top of the yr. That mentioned, we consider that the Fed will elevate rates of interest to five.5% by mid-year and can solely begin decreasing them once more subsequent yr. This might set off one other fall within the Gold worth in the direction of the $1,800 mark within the second quarter, adopted by an increase to $1,950 by yr’s finish.” 

“In any case, the market ought to as soon as once more begin betting on price cuts within the second half of the yr. The week that’s now drawing to an in depth has demonstrated how a lot the Gold worth can revenue from this.”