Gold is facing its biggest weekly loss since early February. However, strategists at Commerzbank see only limited further downside potential.

Hopes of imminent agreement in the dispute over the raising of the US debt ceiling

“The Gold price has slid to a six-week low amid good US economic and robust labour market indicators. After all, these have again dampened hopes of any rapid rate cuts.” 

“What is more, the still smouldering US debt dispute hardly appears to be lending any support any more due to growing hopes that a compromise will be found in time. However, we see any further downside potential for the Gold price as being limited because the US Fed is likely to have concluded its rate hike cycle.”