2023-05-20 11:14:00
© Archyde.com. Commerzbank reveals its expectations for gold prices during the coming period
Arabictrader.com – Commerzbank, economists reported that it witnessed a strong decline, reaching its lowest level in six weeks, amid good US economic indicators, especially for the labor market, which led to receding expectations that the US Federal Reserve may cut interest rates at a rapid pace.
In addition, the crisis in the talks on reaching an agreement on the US debt ceiling is still very much on the table, as it hardly seems that gold will not get any support anymore due to the growing hopes of reaching a compromise in due course.
However, the experts of the German Bank believe that any further downside possibility for gold prices is very limited, because the US Federal Reserve is likely to have ended the cycle of raising interest rates, which will reflect positively on the upcoming gold movements.
Earlier, Commerzbank analysts predicted that gold would continue to find the strong support needed amid the continuing row over the US debt ceiling, and that it is likely to remain above 2000 for the time being, while maintaining its reputation as a safe haven.
And the bank’s experts added that any default of the United States on paying its debts, even if it is only temporary, will undoubtedly have serious negative repercussions on the American economy, making it likely that monetary policy will be eased to a greater extent than what is already priced in the market, and this will make gold Relatively more attractive as an interest-free investment, but gold prices can be expected to decline if the US debt ceiling crisis is resolved.
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