XAU/USD unlikely to see any further upside potential – Commerzbank

There is a risk of disappointment on the Gold market if market participants have to scale back their expectations of rapid interest rate cuts, according to strategists at Commerzbank.

Gold ETFs with significant outflows

As the timing of the Fed’s first rate cut is still uncertain and we do not expect it to happen before May, we do not see any further upside potential for the time being.

Rather, the longer waiting period could lead to disappointment and in the short term to setbacks. The continuing outflows from Gold ETFs also speak in favour of this.