Gold seen trending sideways near $1,950 in the short term
Gold price is likely to trend sideways in the short term, as uncertainty about the future path of US monetary policy remains high. Lower US inflation argues for an end to interest rate hikes, but the robust US economic growth so far argues against a quick turnaround in interest rates.
In the medium term, however, Gold price should rise, as we still expect the US economy to slide into recession, which should fuel speculation about interest rate cuts.
Source: Commerzbank Research