The strong US dollar, which is the mirror opposite of the weak euro, is depressing the gold price. Nonetheless, economists at Commerzbank expect the yellow metal to recover in the coming months.

Upcoming recession in the US

“If it emerges from the ECB meeting that a more resolute approach to tackle inflation will be taken, gold could profit indirectly even though higher interest rates per se are bad news for gold as a non-interest-bearing investment.”

“Market participants increasingly appear to expect a recession in the US. Gold should really benefit from this as a safe haven. This is one reason why we anticipate higher gold prices in the coming months and quarters. That said, for this to happen the still strong ETF outflows would need to end and buying interest would need to return to the market.”