No reason for any significant downward correction of XAU/USD – Commerzbank

Gold price dipped below the $2,020 mark again for a time at the end of last week. Strategists at Commerzbank analyze the yellow metal’s outlook.

Temporary setback on the Gold market

New York Fed President John Williams put a considerable dampener on rate cut speculations. According to Williams, it is too early to think about easing monetary policy at the current time. He even signalled explicitly that a rate cut as early as March appears unlikely. His Chicago Fed colleague Austan Goolsbee also warned that there could not yet be any talk of the US having beaten inflation and likewise took the wind out of the sails of any rate cut speculation. 

All in all, however, it is presumably still just a question of time before the US Federal Reserve lowers its interest rates, so we see no reason for any significant downward correction of the Gold price in the foreseeable future.