Gold Price Forecast: XAU/USD supported on less restrictive rates environment – OCBC
Source Fxstreet
The next step for the Fed is still a cut and a less restrictive rates environment. This should be favourable for Gold, economists at OCBC Bank say.
Risk of pullback in the near term
We continue to maintain a constructive outlook on Gold on expectations that real rates should eventually correct lower (especially after the recent rise). This should happen when the Fed embarks on rate cut cycle in 2Q24.
To add, Gold’s risk-off hedge (safe haven proxy) against geopolitical risks and portfolio diversifier is now playing up. But near term, we do not rule out the risk of pullback given the rapid breakout while long Gold positions in CFTC have hit record highs.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Gold (XAU/USD) opens with a modest bearish gap at the start of a new week and slides back closer to the $4,050 level during the Asian session.
West Texas Intermediate (WTI) oil price opened at a bullish gap, trading around $83.50 per barrel during the Asian hours on Monday.
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