Gold Price Forecast: XAU/USD shows relative strength – Commerzbank

Gold defies headwind. XAU/USD is trading at around $1,930, which puts it within the same trading corridor of between $1,900 and $1,950 in which it has been fluctuating for most of the time since mid-March, strategists at Commerzbank report.

Gold still appears to be in demand as a safe haven and store of value 

“The EUR/USD exchange rate is below 1.09 and the trade-weighted dollar index has climbed to its highest level in nearly two years following further hawkish Fed comments. Furthermore, yields on ten-year US Treasuries have risen to their highest level in over three years and real interest rates are gradually approaching zero; the last time they were in positive territory was a good two years ago. None of this has had any impact on the gold price, however.” 

“Gold is showing relative strength. It still appears to be in demand as a safe haven and store of value, even if ETF inflows this week have been very moderate so far.”

EUR/USD loses traction, drops to 1.0850 area.EUR/USD has edged higher during the European trading hours but reversed its direction after coming within a touching distance of 1.0900. The unabated dollar strength on surging US Treasury bond yields weighs on the pair ahead of the weekend. 


GBP/USD extends slide, closes in on 1.3000.GBP/USD has extended its slide on renewed dollar strength in the early American session and touched its weakest level since November 2020 below 1.3020. The US Dollar Index is sitting at its highest level in nearly two years above 100.


Gold treads water around $1,930 amid surging US yields.Gold continues to trade in the upper half of its weekly range above $1,930 on Friday. The benchmark 10-year US Treasury bond yield is up more than 2% on the day, not allowing the yellow metal to gather bullish momentum.

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