Gold price comes under pressure from waning rate cut expectations. However, economists commerzbank they see limited downside potential.
Physical demand developments in Asia are unlikely to influence prices
“Hopes for US rate cuts in the near future have moderated this week, weighing on the price of gold. A new labor market report is due out later next week If it shows further cooling, as many observers anticipate, this would likely lower rate expectations, especially if a compromise is reached in the US debt dispute, allowing economic indicators to once again determine the path of interest rates.”
“In contrast, developments in physical demand in Asia, as shown by Swiss gold exports and Chinese gold imports from Hong Kong, will have little influence on prices, especially as exports and imports are likely to be somewhat weaker given the high level of prices.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
