Although gold markets made an upward move on Friday, they later returned to the red zone. Hopes seem to be fading for the yellow metal, which remains under pressure. Economists and strategists at the three major banks do not see a recovery in the cards for now.
TDS: d in gold priceThe door is open for even more decline!
cryptokoin.comAs you follow from , gold experienced a decline for the fifth consecutive day on Friday. Thus, it saw its lowest level since the beginning of March. Economists at TD Securities report that risks remain to the downside in the near term. According to economists, gold has fallen below the key technical support level of $1,870, leaving the door open for further declines. In this context, economists make the following assessment:
The recent convincing decline below $1,900, after being flat for most of the year thanks to repeated dip buying, was largely due to the Fed’s statements that it would keep policy tight for an extended period of time. Continued strong US economic data and the rise in crude oil prices have made the Fed’s hawkish rhetoric very convincing. This could lead to FOMC point forecasts coming true. The Fed’s talk of higher interest rates for longer, fears that rising energy costs will leak into core inflation, and a resilient US economy still lead us to more downside concerns.
ANZ: Strategic purchases are possible for gold at this level!
The precious metal did not break out of its downward trajectory and fell to its lowest levels since March. In this environment, ANZ Bank economists analyze the gold price outlook. According to economists, favorable interest rate differentials in the US will keep the USD strong. Based on this, economists come to the following conclusion:
The growing belief around the ‘higher interest rate for longer’ narrative is damaging the investment appeal of gold in the near term. Favorable interest rate differentials in the US will ensure that the USD remains strong. Still, we predict strategic buys will emerge around $1,850 as long-term factors continue.
Commerzbank: Gold unlikely to gain significant ground!
The gold price remained under pressure this week. Thus, the yellow metal fell to $1,856, its lowest price in the last six months. Commerzbank strategists analyze the outlook for the yellow metal. According to strategists, the shiny metal will likely have a hard time coming off the defensive. Strategists explain their views on this issue as follows:
As long as the market continues to expect a ‘soft’ landing in the US, there will be no recovery in prices for now. After all, this will mean that any rate cuts will take longer to arrive. But we expect to see more disappointing economic data in the coming weeks as our U.S. experts are more pessimistic and believe a recession is inevitable. These data are likely to put pressure on the US Dollar and therefore support the gold price.
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