The gold price has been on a roller coaster ride in 2020, with the XAU/USD gold price increasing and decreasing in response to the global economic climate. Recently, the Federal Reserve announced a pause in its rate hikes, which has caused many investors to turn their attention to gold as a safe-haven asset. According to ANZ Bank’s latest forecast, the XAU/USD gold price is expected to increase in the second half of 2020 following the Fed’s pause.
The Federal Reserve’s decision to pause its rate hikes has been a major factor in the recent surge in gold prices. With interest rates remaining low, investors are looking for alternative investments that can provide a safe-haven from market volatility. Gold is seen as a reliable store of value and has historically been used as a hedge against economic uncertainty. As a result, many investors have turned to gold as a safe-haven asset in recent months.
In addition to the Fed’s decision, there are other factors that could contribute to an increase in the XAU/USD gold price. The ongoing trade war between the US and China has caused increased market volatility, which could lead to further investment in gold as a safe-haven asset. Additionally, geopolitical tensions in the Middle East could also contribute to an increase in gold prices.
The ANZ Bank’s latest forecast predicts that the XAU/USD gold price will increase in the second half of 2020 following the Fed’s pause. The bank believes that the current market conditions are favorable for gold prices and that investors will continue to seek out gold as a safe-haven asset. The bank also notes that gold prices could be further supported by increased demand from central banks and other institutional investors.
Overall, the ANZ Bank’s forecast suggests that the XAU/USD gold price could increase in the second half of 2020 following the Fed’s pause. With interest rates remaining low and geopolitical tensions on the rise, many investors are turning to gold as a safe-haven asset. As a result, the XAU/USD gold price could continue to rise in the coming months.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
- Source: Plato Data Intelligence: PlatoAiStream
Clarida Expects No Fed Blackout and Forecasts One or Two Rate Hikes Ahead, According to Forexlive.
Richard Clarida, the Vice Chairman of the Federal Reserve, recently stated that he does not expect a Fed blackout and...