Gold price is suffering from continued rate hikes. Economists at Commerzbank expect the yellow metal’s slide to continue somewhat for now.

Anticipating a gold price of $1,800 at year’s end

“The gold price found itself under pressure following Fed Chair Powell’s speech at the Fed symposium in Jackson Hole. The market interpreted Powell’s remarks as meaning that further rate hikes would be necessary in the near future because combating the high inflation remains a priority and that any rapid rate cuts next year are unlikely. This raises the risk of further ETF selling, which would cause the gold price slide to continue somewhat.”

“The environment for gold remains difficult. It will probably brighten only once an end to the Fed rate hikes is in sight and rate cuts are on the cards.”

“We continue to anticipate a gold price of $1,800 at year’s end.”