- Analytics
- News and Tools
- Market News
- Gold Price Forecast: XAU/USD to offset Fed rate hikes by virtue of safe-haven demand – ANZ
Gold Price Forecast: XAU/USD to offset Fed rate hikes by virtue of safe-haven demand – ANZ
Gold’s geopolitical risk premium eased amid peace talks between Russia and Ukraine. A stronger USD and the prospects of a more aggressive rate hike cycle also weighed on sentiment. Strategists at ANZ expect the yellow metal to offset prospects of aggressive tightening thanks to safe-haven demand amid prolonged Ukraine conflict.
Gold investment demand is rebounding
“The US Federal Reserve raised rates by 25bps at its meeting last week. Its dot plot showed the median for the next two years is exceeding long-term projections. While an aggressive rate hike cycle remains a key headwind, this should be offset by strong safe-haven demand amid the uncertainty created by the ongoing war in Ukraine.”
“Investment demand has seen strong inflows since February, with ETF net flows rising to 202t year-to-date. This follows a net liquidation of 300t in 2021. Investors have also added net-long positions of 233t of gold in futures.”
“Physical gold demand in India and China could be impacted by higher gold prices and the prospects of slower economic growth. Deteriorating gold spot premium in India and China suggests weakening physical offtake.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
