Gold already began crumbling on Friday and the slide continued as the new week of trading got underway. Economists at Commerzbank analyze the yellow metal’s outlook.
Gold shedding some of its geopolitical risk premium again
The US Dollar and bond yields are not currently the main drivers of the Gold price.
The escalation of the Middle East conflict and the resulting demand for Gold as a safe haven played a key role in the upswing since early October.
Because the Middle East conflict has not escalated any further so far, despite the Israeli army’s ground offensive in the Gaza Strip, the Gold price appears to be shedding some of its geopolitical risk premium again.
It looks as if $2,000 will be as good as it gets for the Gold price for the time being.
Source: https://www.fxstreet.com/news/gold-price-forecast-2-000-will-be-as-good-as-it-gets-for-xau-usd-commerzbank-202311071149