Gold is now at its lowest level since mid-March. The economists of commerzbank analyze the prospects of XAU/USD.
Fed Chairman Powell will likely leave all options open
The recent renewed rise in US yields dampens investor interest, both among the more short-term oriented speculative financial investors and ETF investors. In this environment, physical demand in Asia can hardly help, and gold imports from China are unlikely to move prices.
Instead, as in the forex market, attention is more likely to turn to the Fed symposium in Jackson Hole. If the market interprets what is said there as making another US rate hike more likely, XAU/USD could fall further. However, we trust that Powell is not indicating any particular direction.
Overall, we are convinced that US interest rates have already peaked. And as soon as there are also clear signs that the market has recognized this, the gold price should benefit and recover again.
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.
