Gold Price Forecast: XAU/USD still considered as a safe-haven and store of value

Gold is stable following biggest weekly loss in nine months. In the view of economists at Commerzbank, the yellow metal is still regarded as a safe-haven and store of value.

Fed rate hike expectations weighed on gold

“At -3.4%, XAU/USD chalked up its biggest weekly loss since last June. We attribute this to the US Federal Reserve rate hike and the market expectations regarding further rate increases during the course of the year. The higher bond yields and higher real interest rates are also likely to have contributed to last week’s fall. By contrast, the US dollar has depreciated somewhat – so it presumably generated no headwind.” 

“ETF investors continued their robust gold buying: the gold ETFs tracked by Bloomberg registered inflows of 30 tons last week. According to the CFTC’s statistics, speculative financial investors remain at an above-average level as compared with the past 1½ years, however. In other words, it is not only ETF investors but also speculative financial investors who appear to be still counting heavily on gold as a safe-haven and store of value.”

EUR/USD under pressure in the 1.1030 price zone.The EUR/USD pair is under selling pressure, at the lower end of its daily range amid concerns related to the Eastern European crisis. German Producer Prices soared to 25.9% YoY in February, signaling inflation is heating up.


GBP/USD nears 1.3200 as demand for the dollar recedes.GBP/USD is up as demand for the dollar eases, as Wall Street struggles to remain afloat. The Russian invasion of Ukraine and Brexit-related headlines are leading the way.


Gold sticks to modest gains near $1,925 area, lacks follow-through.Gold edged higher during the early part of the trading on Monday, though the intraday uptick lacked follow-through buying or strong bullish conviction. There seems to be no end in sight to the ongoing war in Ukraine, which rejected Russia’s calls to surrender the port city of Mariupol.

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