The correction of the Gold price has been pronounced. In the opinion of strategists at Commerzbank, investors on the Gold market are likely to remain hesitant after the price dip.
Forecast of the mid-year Gold price lowered to $1,800
“Hopes of an end to the rate hike cycle in the near future in the US have turned out to be premature. Currently, a troy ounce of Gold costs a good $130 less than it did at the beginning of the month. Presumably, a number of investors have had their fingers burnt.”
“In response to the Fed’s steeper rate hikes – we now expect rates to peak at 5.5% – we have lowered our forecast of the mid-year Gold price to $1,800 (previously $1,850).”
“A lasting recovery should ensue in the second half of the year, however, as the US economy is then likely to experience a dip that will probably spark renewed expectations of rate cuts. We are therefore sticking with our year-end forecast of $1,950.”
GBP/USD looks to stabilize near 1.2000 heading into the weekend
GBP/USD has reversed its direction and advanced toward 1.2000 in the American session on Friday. The modest retreat witnessed in the US Dollar Index seems to be helping the pair, which stays in negative territory on a weekly basis, edge higher ahead of the weekend.
GBP/USD News
EUR/USD recovers above 1.0650 as US Dollar rally loses steam
EUR/USD has managed to stage a rebound and climbed above 1.0650 after having dropped to its weakest level since early January below 1.0620. Following some slightly dovish comments from Fed policymaker Barkin, the US Dollar lost strength and allowed the pair to edge higher.
EUR/USD News
Gold rebounds above $1,830 as US yields edge lower
Gold rebounds above $1,830 as US yields edge lower
Gold price gathered recovery momentum and climbed above $1,830 in the second half of the day on Friday. Following the three-day rally, the 10-year US Treasury bond yield turned negative on the day below 3.9%, helping XAU/USD retrace its daily decline.
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