Gold price has recently settled down at just below $1,650. The yellow metal remains under pressure due to rate hike outlook, strategists at Commerzbank report.

Investors are still giving gold the cold shoulder

“There have been some indications of late that the pace of rate hikes could slow following the 75 bps step that is anticipated next week. This drove gold up to $1,670. This can be interpreted as a sign that gold will have substantial upside potential just as soon as an end to the aggressive rate increases comes into view. This is not the case as yet, however, which is why most of the price gains were reversed again.”

“Investors are still giving gold the cold shoulder, thereby generating persistent headwind. Speculative financial investors significantly expanded their net short positions in the last reporting week, i.e. the majority are continuing to bet on a falling gold price. ETF investors sold sizeable holdings again last week. Here too, only signs of an end to the aggressive rate hikes are likely to trigger a shift in sentiment.”