#XAUUSD @ 2,020.83 Gold Price Forecast: to prove resilient to rate hikes – Commerzbank
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
Gold price has once again managed to exceed the $2,000 mark ahead of the US Federal Reserve interest rate decision. Economists at Commerzbank analyze how the policy announcement could impact the yellow metal.
“In view of the recent fall in inflation and initial signs of weakness on the US labour market, many market participants now expect the Fed to signal a pause in rate hikes. According to our experts, such hopes could prove premature.”
“We are confident that today’s rate hike will not turn out to be the last. This, in turn, is likely to undermine any expectations of a rapid interest rate turnaround – the market envisages the first rate cuts in the second half year. All of this points to an upward correction of interest rate expectations and thus to a weaker Gold price. That said, it is by no means certain that the Fed will be able to convince the market of its hawkish stance.”
“It is equally conceivable that the market will regard any further rate hikes as a mistake that could exacerbate a potential recession in the US and force the Fed to implement an even more pronounced interest rate U-turn at a later date. This could then offset any negative impact of the rate hikes on the Gold price.”
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
