Gold Price Forecast: A continued XAU/USD recovery is unlikely in the short term – Commerzbank

FXStreet Insights Team FXStreet

Gold pushed back above $2,000 after US Retail Sales came in softer-than-expected. Economists at Commerzbank analyze the yellow metal’s outlook.

The ongoing ETF outflows are a further negative factor

Expectations of near-term interest rate cuts by the Fed have dwindled significantly once again following the inflation data. As a result, US bond yields rose significantly and the US Dollar appreciated, both of which are negative for Gold.

The ongoing ETF outflows are a further negative factor. According to Bloomberg, these have already amounted to 76 tons since the beginning of the year. Most recently, there were outflows on 20 out of 21 trading days.

The Gold price rose again on Thursday to $2,000 following weaker US Retail Sales data. However, a continued price recovery is unlikely in the short term.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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