Gold Price Forecast: Hidden inflation genie to prevent XAU/USD rises – Deutsche Bank

Gold prices seem likely to be spooked by fears around rising interest rates, assuming that the inflation genie is kept (more or less) in the bottle. This may limit investor interest and keep a lid on price rises, strategists at Deutsche Bank report.

See – Gold Price Forecast: Rising US real yields and a strengthening USD to weigh on XAU/USD – Credit Suisse

Some factors driving recent XAU/USD increases may not be sustainable

“Inflation worries have not shifted market dynamics greatly. Recent gold price rises have been modest and improving economic growth rates and rising nominal yields will likely discourage any further major gains. Tapering would be a further headwind.” 

“Recent signs of renewed inflows into ETFs need to be confirmed and retail and speculative investor positions remain down.”

“DXY expectations will remain important, but coronavirus and other setbacks may provide only a temporary lift.”

“End-June 2022 gold price forecast: $1,850/oz.”