Gold price back at $2,000 after Fed meeting. Economists at Commerzbank expect the yellow metal to see renewed downside pressure as the market will be forced to correct its expectation of a rapid interest rate turnaround again.

Robust Swiss Gold exports to Asia in February

“Currently the market expects key rates in the US to be lowered before year’s end, which has recently lent buoyancy to the Gold price again. However, we believe that the market will be forced to correct its expectation of a rapid interest rate turnaround again. This is likely to put XAU/USD back under pressure.” 

“The fact that the price level has repercussions for physical demand should not be ignored: Swiss Gold exports indicate that demand for Gold in China and India, in February at least, was considerably higher because prices were lower then. China’s Gold imports from Hong Kong should likewise turn out to have been correspondingly robust.”