Gold Price Forecast: XAU/USD could fall further in the short term – Commerzbank

Market participants on the Gold market today are likely to focus mainly on the publication of the US inflation data for January. Economists at Commerzbank analyze the yellow metal’s outlook ahead of the Consumer Price Index (CPI) report.

US inflation data in focus on the Gold market

Although the inflation rate is likely to have fallen further in January, it is unlikely to be sufficient to revive the expectations of interest rate cuts that have disappeared from the market. The Gold price could therefore fall further in the short term. 

However, our economists continue to expect an initial Fed rate cut in May and significant rate cuts later in the year. The current Gold price weakness should therefore only be temporary.