Gold: Fed expectations keep prices vulnerable – ING

ING analysts Warren Patterson and Ewa Manthey note that Gold has fallen toward $4,000 per ounce alongside a broader market sell-off, pressured by a stronger US Dollar and expectations of higher-for-longer Federal Reserve policy. Silver slumped 5%. While geopolitical risks remain elevated, they expect Gold to trade largely in line with Fed expectations, leaving it exposed to higher yields and Dollar strength near term.

Higher-for-longer Fed weighs on bullion

"Metals sold off after a sharp decline in global equity markets sparked a broader risk-off move across asset classes during Tuesday’s session"

"Gold also came under pressure, falling alongside a broader market sell-off, towards $4,000/oz. A stronger US dollar and expectations that the Fed could keep rates higher for longer outweighed safe-haven support from geopolitical risks."

"Silver, meanwhile, slumped 5%. While geopolitical risks remain elevated, gold is likely to trade in line with Fed expectations, leaving prices vulnerable to higher yields and a stronger dollar in the near term."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)