Gold Price Forecast: XAU/USD likely to fall further short term as hopes of rate cuts in H1 fade – MUFG

Precious metals declined on the back of hotter-than-expected US inflation report. Economists at MUFG Bank analyze the market’s outlook.

Higher interest rates are typically negative for precious metals

Silver and PGMs (Platinum and Palladium) have hammered lower in line with Gold’s fall, but still stand to bounce on barging hunting.

Higher interest rates are typically negative for precious metals, as they are non-interest-bearing. The Gold price is likely to fall further short term as hopes of rate cuts in H1 2024 fade, but significant cuts could come later in the year so Gold weakness should only be temporary.