Gold Price Forecast: XAUUSD to cheer the return of haven seekers – ANZ
Rising interest rates and a stronger US dollar have weighed on gold prices recently. Nevertheless, a heavy sell-off in equity markets, amid deteriorating economic growth prospects, should see haven seekers return to gold, economists at ANZ Bank report.
Stronger USD weighing in gold prices
“A sell-off in financial markets failed to attract safe-haven flows toward gold in any meaningful quantities. Prices fell briefly below $1,800, amid rising yields and an appreciating US dollar. An aggressive Federal Reserve rate hike and economic growth concerns saw the US dollar hitting a multi-year high.”
“A deteriorating macro-economic outlook along with higher inflation should still be supportive for gold, and the rising risk of underperformance in equity market’s has enhanced its risk-diversifier appeal.”