Gold Price Forecast: XAU/USD to be kept in check by the possibility of another Fed rate hike – Commerzbank

Economists at Commerzbank discuss Gold (XAU/USD) outlook.

Central banks planning further Gold purchases

Gold price dipped to a two-month low this week, but has recovered noticeably again in the meantime. Though it now seems likely that the Fed will take a break from its rate hike cycle in mid-June after all, a further rate increase is not off the table entirely. This should keep the gold price in check for the time being.

According to a survey conducted by the World Gold Council, central banks are planning to buy further Gold following their record purchases last year. Central bank purchases do not necessarily drive up the Fold price – but they could help prevent any fall in prices.