© Archyde.com. Commerzbank predicts when gold prices will drop below the $1,800 level
Arabictrader.com – Gold achieved a strong rise due to the turmoil in the markets this week, which contributed to strengthening the bullish path for the precious metal, but if the US Federal Reserve sees what is required to take additional measures to combat inflation, that is, to raise interest at a more severe pace, it is likely to get rid of Gold is off some of its recent gains again, according to a report by economists at Commerzbank.
In this regard, the experts of the German Bank explained that the market now expects the US Federal Reserve to raise interest rates to 5% by next May, and after that, it is likely that the US Federal Reserve will cut interest rates until the end of this year, when it is of great importance to start The market is once again betting on a rate cut in the second half of the year, which will eventually affect gold’s movements.
However, the bank’s economists believe that the US Federal Reserve will raise interest rates to 5.5% by the middle of the year and start cutting them again next year, and this potential action may lead to a sharp decline to approximately the level of 1,800 in the second quarter, followed by a strong rise recorded Level $1,950 by the end of the year.
With regard to gold trading today, spot gold contracts recorded an increase of approximately 3.64%, to settle near $ 1,989.34 an ounce. Likewise, April delivery prices increased by approximately 3.68%, to approximately $ 1,993.70 an ounce.