Gold has generally been fluctuating between $1,800 and a good $1,850 since mid-May. In the view of strategists at Commerzbank, nothing much is likely to unsettle the gold market in any serious way next week.

Gold will find it difficult to recover unless there is a reversal of ETF flows

“Gold is currently being held in check on two sides: higher interest rates and the firm US dollar are limiting gold’s upside potential as a non-interest-bearing investment, while the high inflation rates are preventing gold – in its capacity as a store of value – from sliding. This is not likely to change next week either, which is when the Fed will be publishing its latest meeting minutes.”

“The minutes will doubtless reflect the Fed’s determination to regain control of the high inflation by implementing sizeable rate hikes.”

“ETF investors have been turning their backs on gold again of late and selling shares. Unless there is a reversal of ETF flows, the gold price will likely find it difficult to recover.”