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
Fed Chair Warsh Makes Jackson Hole Debut: Can Bitcoin Capitalize on Momentum to Break Strong $83,000 Resistance?On August 28, Bitcoin (BTC) price continued to fluctuate in a narrow range
On August 28 Eastern Time, international silver prices continued their recent strong rally, with spot silver (XAGUSD) briefly breaking through the key $70 mark intraday, after approaching
Today’s Market Recap: Nvidia Surges Nearly 9%, Salesforce and CrowdStrike Ignite Software Stocks as Market Focuses on Jackson Hole Meeting On August 27, Eastern Time, the three major U.S. stock indices closed higher across the board, led by the Nasdaq. Nvidia's strong earnings report and optimistic reve
On August 27, Eastern Time, the three major U.S. stock indices closed higher across the board, led by the Nasdaq. Nvidia's strong earnings report and optimistic reve
Gold Price Forecast: Hotter-Than-Expected PCE Inflation Pressures Gold, Will Warsh's Jackson Hole Speech Spark a New Rally? As of the European session on August 27, today's gold price (XAUUSD) maintained a range-bound consolidation trend intraday, with the latest price trading near $4,600. On Wednesday, gold p
As of the European session on August 27, today's gold price (XAUUSD) maintained a range-bound consolidation trend intraday, with the latest price trading near $4,600. On Wednesday, gold p
TradingKey Daily Market Briefing: Nvidia Earnings Beat Expectations, Strong PCE Inflation Weighs on Market Sentiment as Focus Turns to Jackson Hole Meeting On August 26, Eastern Time, the three major U.S. stock indices closed slightly lower. U.S. July PCE inflation data came in slightly strong, reinforcing market concer
On August 26, Eastern Time, the three major U.S. stock indices closed slightly lower. U.S. July PCE inflation data came in slightly strong, reinforcing market concer
Related Instrument
