Gold would likely give up its recent gains if market mood improves
“We had previously assumed a Gold price of $1,950 at the end of the year, as we had expected that the market would only increasingly bet on a turnaround of interest rates in the second half of the year. This has now occurred much earlier due to the turmoil in the banking sector. Thus, if these continue, XAU/USD should reach our year-end“If fears can be allayed, this could allow the Fed to raise interest rates further in order to curb inflation, which remains too high.
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