#XAUUSD @ 1,756.12 Gold Price Forecast: to struggle amid prospects of more tightening – ANZ
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Recent weakness in the USD saw Gold price testing $1,780. But the Federal Reserve’s commitment to bringing inflation down with tighter monetary policy leaves room for gains in the greenback, strategists at ANZ Bank report.
“Softer than expected inflation in the US triggered a sell-off in the US Dollar, pushing Gold higher. Nevertheless, inflation remains well above the central bank’s target range of 2%. This leaves room for more tightening until inflation slows considerably.”
“US benchmark yields are rising and likely to move higher given the view of another 100 bps rate hike by the Fed. Investment demand is stabilising, with slowing ETF outflows and covering of short positions.”
“Physical demand for Gold is weakening, though central bank purchases remain strong.”
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