The price of gold returns to $2,000 after the Fed meeting. Commerzbank economists They anticipate further downward pressure on the yellow metal, as the market will be forced to once again correct its expectations of a rapid turnaround in interest rates.
Robust Swiss gold exports to Asia in February
“Currently, the market expects key US rates to be cut before the end of the year, which has recently given the gold price another lift. However, we believe the market will be forced to correct again. their expectation of a quick turnaround in interest rates. This is likely to put pressure on XAU/USD again.”
“Do not ignore that the price level has an impact on physical demand: Swiss Gold exports indicate that the demand for Gold in China and India, in February at least, was considerably higher because prices were lower then. Imports Chinese gold flows from Hong Kong should also have been important.”
Source: Fx Street
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