According to Harshal Barot, a senior consultant at Metals Focus, there are growing indications that the United States may avoid a recession. Based on this assessment and the expectation of prolonged high interest rates, our forecasts project a decline in gold prices to approximately $1,850 levels this year. Recent data suggesting a stable economy could prompt the Federal Reserve to implement further rate hikes in order to curb inflation.
Investors are currently anticipating a 77% likelihood of a rate hike taking place in July, as indicated by CME's Fedwatch tool. Additionally, major U.S. banks are predicting a 25-basis-point rate hike, with rate cuts expected to occur from March 2024 onwards.
The presence of elevated interest rates acts as a deterrent for traders considering investment in non-yielding gold.
XAUUSD SELL 1910 -1912 💯💯
✅ TP1: 1905
✅ TP2: 1900
🛑 SL: 1917
