Market news
16.09.2022, 11:46

Gold Price Forecast: XAU/USD eyes $1,600 amid rising rates and stronger USD – ANZ

Gold price has fallen steadily since March as central banks indicate tighter monetary policies for the rest of the year. Subsequently, economists at ANZ Bank have downgraded their XAU/USD short-term forecast to $1,600.

Haven demand remains subdued 

“We now think USD strength will last longer than we had thought. Labour resilience means the Fed will have to hike further than the market is expecting. Deteriorating liquidity conditions and higher US yields will feed haven flows and add risk premium.”

“Europe faces a serious energy crisis, which is a headwind for EUR and support for the USD. This makes us thinks the USD will peak in Q1 2023. In the face of sustained dollar strength, we see gold continuing to underperform.”

“Rising geopolitical and economic risks are doing little to entice safe-haven buying, with the USD still asset of choice. Nevertheless, the risk of either stagflation or outright recession could ultimately turn this around. Gold has traditionally outperformed in such environments.”

“We see further downside in the short-term. We have cut our short-term (0-3mth) target to $1,600.”

 

© 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.

AML Website Summary

Risk Disclosure

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.

Privacy Policy

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
Feedback
Live Chat E-mail
Up
Choose your language / location