Gold to Climb Again Once Remaining Rate Hike Expectations Disappear: Commerzbank AG

9 August 2023

Gold saw a minor setback with a less than 1% drop last week, yet the future looks bright. Ahead of the anticipated US inflation report, Commerzbank’s economists have cast an optimistic lens on the metal’s prospects. With the forthcoming US inflation data, we anticipate a further easing of price pressures in July, reinforcing our view that we’ve seen the pinnacle of interest rates. As the market sheds its rate hike expectations, gold is poised for a rebound. While gold may momentarily stabilize around the $1,950 level, we confidently project a surge to $2,000 by the close of the year.

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