Last week’s Fed meeting did not really weigh on the Gold price in any lasting manner. Economists at Commerzbank analyze XAU/USD outlook.
Interest rate expectations of the market will now remain at their higher levels
After a brief dip just below $1,930, Gold now appears to have settled down at around $1,950 again. This is likely to be the level at which it will continue to feel comfortable for the foreseeable future.
After all, the shift in the interest rate projections of the FOMC members, the majority of which now envisage two further rate hikes of 25 bps each this year, means that the interest rate expectations of the market will now remain at their higher levels.
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