The price of Gold fell this week to a two-month low of $1,985 following the release of higher-than-expected US inflation data. Commerzbank economists analyze the prospects for the yellow metal.
Interest rate cuts still expected this year
After the unexpected inflation data in the US, there was a significant decline in the price of Gold, which fell below $2,000 per troy ounce. However, with the market already very cautious on key interest rates, the chances of further corrections are likely to be rather slim.
According to Fed Fund Futures, the first rate cut is not scheduled until June. By the end of the year, the Fed's interest rate is expected to be around 4.50%. This is 50 basis points more than expected two weeks ago. After all, significant interest rate cuts are still expected this year.
Source: Fx Street
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