Gold Price Forecast: XAU/USD to struggle if the Fed drives interest rate expectations down even further – Commerzbank

Gold price has dipped back below the $2,000 mark. Strategists at Commerzbank analyze the yellow metal’s outlook.

Headwind for Gold price

The market has somewhat lowered its rate cut expectations again. And indeed we also believe that the market’s expectations of a first US rate cut as early as the spring are somewhat premature; we do not envisage any such step until at least mid-year. 

Further headwind for the Gold price is looming if the US Federal Reserve were to drive interest rate expectations down even further at its meeting today.

See – Fed Preview: Forecasts from 10 major banks, crushing rate cut prospects