After a brief dip just below $2,150, Gold started to recover at the start of the new week. Strategists at Commerzbank analyze the yellow metal’s outlook.
US data has been mixed of late
The upcoming Fed meeting this week is expected to draw particular focus on the so-called ‘dot plot,’ which represents the interest rate forecasts of individual FOMC members.
Recent US data has presented a mixed picture. While economic indicators have been somewhat disappointing, price data has indicated persistent inflationary pressures. Given this context, it is anticipated that central bankers will likely maintain their current assessment, resulting in minimal changes to the ‘dots.’ Such an outcome could potentially bolster Gold, as some market participants may anticipate upward adjustments to interest rate expectations following the release of US inflation data.
