Aggressive rate hikes and a stronger US dollar are headwinds for gold in the short-term. However, economists at ANZ Bank expect the yellow metal to remain underpinned by soaring inflation and global growth concerns.

Reversal of the USD strength would be positive for gold 

“Investors have flocked to the US dollar, as prospects of an economic slowdown in Europe rise and the US begins what could be an aggressive rate hike cycle. While the US dollar looks strong in the short term, any sign of peaking could stabilise gold prices.”

“Gold’s status as an inflation hedge is waning, as the risk of more aggressive monetary tightening rises. That said, the darkening economic backdrop and subsequent sell-off in equity markets should provide some support.”