Gold Price Forecast: XAU/USD to remain robust as Fed stays behind the curve – TDS
|Gold has continued to churn higher despite a decisively hawkish Federal Reserve. Even the expected more aggressive hikes will not be sufficient to turn interest away from the yellow metal, strategists at TD Securities report.
Increasing recession fears offer further support to gold bulls
“All the shorts have been wiped out and ETF inflows have slowed as the fear trade subsides. In turn, either gold bugs are sleepwalking towards a significant drawdown as inflows could subside alongside an increase to short positioning, or the resilience in prices is reflecting a different set of information.”
“Gold market could be incorporating some skepticism that the neutral rate required to tame inflation is significantly higher given the inflationary shock is driven by the supply-side, while increasing recession fears offer further support the gold bulls.”
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