Gold is likely to track shifting market expectations around the Fed tightening in the short term, according to strategists at ANZ Bank.

USD is likely to weaken in the second half of 2023

“The Gold market remains vulnerable to market expectations around the Fed’s monetary policy. Strong economic data from the US with sticky inflation raise the risk of more rate hikes; this is likely to be a headwind in the short term.”

“Nevertheless, we see limited upside in the USD, which is a tailwind for gold prices. Even with higher terminal rates, the USD is likely to weaken in H2 2023.”