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Gold Price Forecast: XAU/USD to suffer as strong labour market will keep Fed hawkish – ANZ


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Economists at ANZ believe Gold will be largely guided by US economic data. A hot job market will keep Fed hawkish, pummeling the yellow metal.

Strong labour data provides more room for the Fed to remain hawkish

“Labor data has been strong despite aggressive rate hikes, providing more room for the Fed to remain hawkish and delaying any rate cut until inflation comes into its target range. We see this as a headwind for the Gold price, triggering profit booking after the recent price rally.”

“Physical Gold demand is holding up in China as the economy reopens. Central banks are continuing their buying spree amid elevated geopolitical risks.”