Expect gold to increase to find sell
Updated
The US dollar has strengthened following the release of disappointing economic indicators from China, which has raised concerns about global growth and increased demand for the safe-haven greenback.
Recently, the dollar has risen due to fears that prolonged inflation will lead the Federal Reserve to maintain higher interest rates for longer than previously anticipated by traders.
The latest US retail sales data, which will be released on Tuesday, could contribute to the debate. So far, US consumers have remained resilient even in the face of rising interest rates, and this momentum could bolster the dollar.
Recently, the dollar has risen due to fears that prolonged inflation will lead the Federal Reserve to maintain higher interest rates for longer than previously anticipated by traders.
The latest US retail sales data, which will be released on Tuesday, could contribute to the debate. So far, US consumers have remained resilient even in the face of rising interest rates, and this momentum could bolster the dollar.
Note
While ANZ remains bullish on gold, the current lackluster environment has prompted the bank to push back on its prediction of a new record high. The Bank of Australia forecasts prices to average around $2,050 an ounce by the fourth quarter of 2023. Prices are expected to hit a new high by the end of the first quarter of 2024, with prices averaging around $2,100.Note
Currently, the benchmark interest rate in the US is in the range of 5.25 - 5.5%, the highest level in the past 22 years.
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