The Gold market faced challenges throughout the previous year due to US Dollar strength and central bank tightening. According to economists at ING, XAU/USD is currently awaiting clarity regarding the Federal Reserve’s easing path.
Fed policy remains key for Gold
The trajectory of Gold prices in the upcoming months will heavily depend on Federal Reserve policy.
Investors, as indicated by swaps markets, perceive minimal likelihood of an interest rate cut until June. Our US economist concurs with this assessment. In the short term, this is expected to bolster the Dollar and exert downward pressure on Gold prices.
Anticipated volatility in Gold prices is foreseen in the upcoming months, driven by the market’s response to macroeconomic factors, monitoring geopolitical developments, and the Federal Reserve’s interest rate policies.
