After the Fed meeting, gold’s price went back up to $2,000. Economists at Commerzbank think that the price of gold will go down again because the market will have to change its expectation of a quick change in interest rates.
Robust Swiss Gold exports to Asia in February
In February, Switzerland sent a lot of gold to Asia.
“Right now, the market thinks that key rates in the US will be lowered before the end of the year. This has recently given the Gold price a boost again. But we think the market will have to change what it thinks about how quickly interest rates will change again. This is likely to make XAU/USD go down again.”
“It’s important not to ignore the fact that the price level has an effect on physical demand. Swiss Gold exports show that, at least in February, China and India bought a lot more gold because prices were lower. China’s imports of gold from Hong Kong should have been just as strong.”