Gold price correction – what will happen next? The Commerzbank strategists point out that interest rate expectations remain the main factor driving the yellow metal.
The first rate cut is now expected at the end of the fourth quarter
“Interest rate expectations remain the main factor driving pricing. The interest rate top, as reflected in Fed Fund Futures, is now above 5% and therefore Therefore, it is more in line with recent comments by numerous Fed officials. Furthermore, this level of interest rates will be held until late fall, according to Fed Fund Futures.”
“The first minor rate cut is now not expected until late in the fourth quarter, rather than as early as the summer. This is also more in line with the rhetoric of the Fed, which has so far ruled out the possibility of rate cuts this year. .”
Source: Fx Street
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