At its peak, Gold reached $1,915. Economists at Commerzbank expect the yellow metal to remain on the up as rate hike expectations are priced out.

Gold will only begin falling again once the situation has stabilised and rate hike expectations resume

“Not even a rate hike by 25 bps is fully priced in for the Fed’s meeting next week, and rate cuts are already anticipated in the second half year. Today’s US inflation data are hardly likely to turn the tide. For this to happen, it first needs to become clear that the bank closures in the US are merely isolated cases and are unlikely to spark further closures.” 

“The support measures announced at the weekend by the Fed and US authorities should contribute to stabilising the banking sector. It remains to be seen whether market confidence will be restored so quickly, however. Consequently, Gold is likely to remain in demand as a safe haven.” 

“Gold will probably only begin falling again once the situation has stabilised and rate hike expectations resume.”