US Dollar strength and central bank tightening weighed on the Gold market for most of last year. XAU/USD awaits clarity on Fed easing path, economists at ING say.
Federal Reserve policy will remain key for the outlook of Gold prices in the months ahead.
Swaps markets suggest investors don’t see much chance of a reduction in interest rates until June. Our US economist agrees. This will support the Dollar and weigh on the Gold price in the short term.
We expect Gold prices to remain volatile in the coming months as the market reacts to macro drivers, tracking geopolitical events and Fed rate policy.