Fears of increasing interest rates are expected to spooke gold prices, assuming that the inflation genie is kept (more or less) in the bottle. According to Deutsche Bank strategists, this might limit investor interest and keep price increases in check.
See also: Gold Price Forecast: Rising US Real Yields and a Stronger Dollar Will Put Pressure on the XAU/USD Credit Suisse (credit Suisse)
“Concerns about inflation have had little impact on market dynamics. Recent gold price increases have been moderate, and rising nominal yields and improving economic growth rates will likely discourage any additional significant gains. Tapering would be an additional stumbling block.”
“Recent hints of increased ETF inflows must be confirmed, and retail and speculative investor positions remain low.”
“Expectations for DXY will remain high, but coronavirus and other setbacks may only provide a temporary boost.”
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Gold price projection for the end of June 2022: $1,850/oz.”
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