Gold Price Forecast: A pause in the Fed’s rate rises should provide some support to XAU/USD – ANZ
|Economists at ANZ Bank analyze the correlation between the US yield and Gold and discuss the yellow metal’s outlook.
USD strength is likely to wane in 2024
History suggests Gold returns remain decent during rate hiking cycles and outperform during easing and a lower rate environment.
The negative beta with the US yield weakens during hiking cycles and strengthens during easing cycles.
USD strength is likely to wane in 2024. While we think appreciation in the USD will sustain to year-end, firmer expectations of rate cuts and slowing economic growth momentum will see the USD dropping again next year.
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