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.
Recommended Articles
Bitcoin, crypto market remain neutral despite Federal Reserve cutting rates by 25bpsBitcoin (BTC) and a majority of top tokens in the cryptocurrency market held steady on Wednesday, despite the Federal Reserve's (Fed) decision to lower interest rates by 25 basis points (bps), according to market expectations.
Bitcoin (BTC) and a majority of top tokens in the cryptocurrency market held steady on Wednesday, despite the Federal Reserve's (Fed) decision to lower interest rates by 25 basis points (bps), according to market expectations.
Gold (XAU/USD) is seen consolidating the previous day's retracement slide from the record high, levels beyond the $3,700 mark, touched in the aftermath of the FOMC dovish rate cut.
Markets remain in a cautiously optimistic mood early Thursday, assessing the US Fed prudence on further easing, while gearing for the expected interest rate cut-hold by the BoE later in the day.
Meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are regaining momentum, driven by increased capital inflows in the derivatives markets.
U.S. stocks moved unevenly after the Fed's rate cut, with Dow rising but S&P 500 and Nasdaq slipping.
Related Instrument
