Gold Price Forecast: XAU/USD to lurch higher towards summer 2020 highs of $2,075 – TDS
|Russia-Ukraine conflict-driven commodity price spikes and the resulting higher inflation expectations have prompted money managers to extend their net long gold exposure. Strategists at TD Securities believe that the yellow metal could reach 2020 summer highs of $2,075.
Gold to remain strong until the Fed makes a commitment to crush inflation
“Specs have aggressively covered their short positions, as it became apparent that the conflict in Europe is set to lift inflation and concerns surrounding an economic slowdown will likely convince the Fed and other key major central banks to take a balanced approach to monetary policy.”
“With real 10-year yields dropping to -0.97%, it would not be surprising to see gold price to move toward the summer 2020 highs of $2,075/oz.”
“Gold will likely stay strong until it becomes clear that the Fed will make a commitment to crush inflation. But this decision will not be taken quickly, likely after it is known what the inflation trajectory is longer-term.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.