Gold Price Forecast: XAU/USD recent price decline will stimulate fresh buying – ANZ

Increasing expectations of the Fed staying on its tightening path saw Gold prices fall. Economists at ANZ Bank discuss XAU/USD outlook.

The Fed will pause its hiking at some point this year

Increasing prospects of the Fed remaining hawkish are keeping Gold prices under pressure. 

Strong economic data and sticky services inflation are leaving room for further monetary tightening, which will be a short-term headwind. Nevertheless, the Fed will pause its hiking at some point this year, and that remains a structural support. 

We expect the recent price decline will stimulate fresh buying.