Strategists at Commerzbank have adjusted their Gold price forecast. They now expect XAU/USD to slump toward $1,800 in the first half of the year before drifting back higher toward $1,950 by year-end.

Gold likely to remain under pressure in the short term

“In the short term, the Gold price is likely to remain under pressure due to continued robust US economic activity and only slowly falling inflation, both supporting US interest rate hike expectations.”

“As soon as an end to US interest rate hikes becomes apparent, the precious metal's attractiveness should slowly increase again. This will be all the more the case if it becomes clear that the Fed will have to take back some of its interest rate hikes again.”

“We have lowered our forecasts for the first half of the year from $1,850 to $1,800. However, we remain optimistic for the second half of the year and continue to expect a gradual increase towards $1,950.”

Source: Commerzbank Research