- Analytics
- News and Tools
- Market News
- Gold Price Forecast: Do not look at XAU/USD as a safe-haven – TDS
Gold Price Forecast: Do not look at XAU/USD as a safe-haven – TDS
Aggressive Federal Reserve rate hike bets as inflation expectations remain high are set to weigh on gold, strategists at TD Securities report.
Investors unlikely to grow their appetite for gold
“A flat and inverted yield curve has historically been associated with a slowing growth outlook and concurrently rising gold prices. This cycle, however, inflation's increasing persistence is a constraint for the Fed, which suggests that a restrictive rates regime may persist for longer than historical precedents. In this context, gold prices are unlikely to rise with a deteriorating growth outlook until the Fed makes progress in the war on inflation.”
“US wage growth trends are validating near-term household inflation expectations, but appear to have settled at levels that would sustain a CPI inflation rate of 5%-6% going forward, far removed from the 2.5% rate consistent with the Fed's inflation target. In turn, don't count on investors to grow their appetite for the yellow metal.”
“Physical demand for bullion has remained elevated, but seasonal considerations suggest that this tailwind could soon fade following India's festive season.”
© 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
