Gold Mark Forecast: XAU/USD to advance successfully within the second half of the twelve months as Fed pauses – ANZ
Repricing of the Fed’s terminal rate will drive the Gold label within the transient. Economists at ANZ Bank query the Fed to pause its hobby rate hiking cycle this twelve months. This could perchance impartial restful lower the USD and leave US accurate yields intact, then lifting XAU/USD within the second half of 2023.
A weakening dollar will seemingly be a key tailwind for Gold costs
“Bettering fundamentals all the intention via other main economies could perchance presumably restrict the dollar’s upside. Our DXY forecast trajectory remains unchanged, and has the index falling to 98 by pause of the twelve months. This could perchance very successfully be a tailwind for the Gold market.”
“We take into accout recalibration of market expectations all the intention via the FFR could perchance presumably pick gold costs hazardous within the transient. On the opposite hand, we restful query the Fed to pause and for yields to pattern lower in the direction of twelve months-pause, which can impartial restful strengthen Gold costs in H2 2023.”
“We inquire of closing twelve months’s monetary tightening starting to direct up in slowing financial enhance later this twelve months. This could perchance presumably hold a dual affect: slowing financial enhance could perchance presumably assign off monetary protection easing, and Gold could perchance presumably entice haven flows.”
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