Gold price climbs to a seven-month high on the back of rate cut expectations. Economists at Commerzbank analyze the yellow metal’s outlook.

Current expectations of Fed rate cuts of 50 bps by mid-2024 are more likely to be disappointed

The upswing on the Gold market has continued this week, the Gold price almost regaining its May yearly high. Any further upside potential is probably limited, however. This is because the current expectations of Fed rate cuts of 50 bps by mid-2024 are more likely to be disappointed.

Accordingly, we also envisage a correction on the Gold market. This could be triggered by the US labour market report at the end of the week.