The gold price correction is clear. According to Commerzbank strategists, investors in the gold market are likely to remain hesitant after the price drop. PROVISION FOR AN ANNUAL PRICE FLOOR OF $1,800 FOR GOLD “Hope that the rate hike cycle will end in the US in the near future has proven premature. A troy ounce of gold currently costs a good $130 less than at the beginning of the month. Presumably many investors burned their fingers.” „In response to the Fed’s tightening interest rates – we now expect interest rates to peak at 5.5% – we lowered our average gold price forecast to $1,800 (previously $1,850).” ” However , a sustained recovery should occur in the second half of the year, as the US economy is then likely to experience a downturn, which is likely to raise new interest rate expectations. That’s why we’re sticking to our year-end forecast of $1,950.”
