• Gold Price Forecast: XAUUSD trading to remain a snoozefest – TDS

Market news

28 June 2022

Gold Price Forecast: XAUUSD trading to remain a snoozefest – TDS

It is a snoozefest in gold markets. Strategists at TD Securities expect this regime to continue for the time being.

Hawkish Fed regime clashes with recession fears 

“The yellow metal is being pulled in two directions as a hawkish Fed regime clashes with recession fears. After all, a Fed hiking cycle tends to be associated with rising recession risks.”

“This hiking cycle differs from recent historical analogs as the Fed's ability to control inflation is limited, given that the supply-side is disrupted. In turn, gold bugs sniffing out a potential stagflationary outcome associated with lower growth but lingering inflation should consider that central banks, facing a credibility crisis, could also continue to raise rates for longer than they otherwise would.”

“Gold trading will likely remain a snoozefest while bears wait for a catalyst to shake-out this complacent length.”

 

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.