Gold investors need to pay attention to Fed's terminal rate forecasts next week - Commerzbank

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Gold investors need to pay attention to Fed's terminal rate forecasts next week - Commerzbank
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Commerzbank Fed gold Gold investors need to pay attention to Fed's terminal rate forecasts next week - Commerzbank

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"An end to the rate hike cycle is thus edging closer. In anticipation of this, bond yields have fallen noticeably and the U.S. dollar has shed some of its previous gains again. Consequently, the headwind that gold has been facing from this side has switched to tailwind," he said. With the Federal Reserve's monetary policy set for next week, Fritsch said that gold investors need to pay attention to the expected terminal rate more than the face of future rate hikes.

In the near term, Commerzbank said there is a risk gold prices retest support at $1,750 an ounce. Fritsch said that despite gold's rally, there is some hesitancy in the marketplace.

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