Gold price has been under pressure this week and has dropped back to $1,860, its lowest price in a good six months. Strategists at Commerzbank analyze the yellow metal’s outlook.
Gold will probably find it difficult to come out of the defensive
For as long as the market continues to expect a ‘soft’ landing in the US, no price recovery is likely to happen for now. After all, this would imply that it will take longer for any interest rate cut to be forthcoming.
However, because our US experts are more pessimistic and believe that a recession is inevitable, we expect to see more disappointing economic data in the coming weeks. These are likely to put the US Dollar under pressure and thereby lend buoyancy to the Gold price.
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