Gold Price Forecast: XAU/USD’s further upside potential likely to remain limited – Commerzbank
|Gold has almost recovered its losses which it had suffered following the strong US inflation data. Analysts at Commerzbank analyze the yellow metal’s outlook.
Gold investments would continue to be at a significant disadvantage relative to interest-bearing US assets
It appears that interest rate cuts are still likely this year, albeit at a slightly later date. This has been confirmed by statements from FOMC members. They had recently only questioned the market's early timing of a turnaround in interest rates, but not rate cuts per se.
Nevertheless, Gold's further upside potential is likely to remain limited. This is because a persistently robust US economy, coupled with stubbornly high inflation, argues against a pronounced cycle of rate cuts, meaning that Gold investments would continue to be at a significant disadvantage relative to interest-bearing US assets.
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.