Commerzbank and TDS Announced: Gold At These Levels In December!

Gold climbed back above $1,700 and continues to struggle. However, Commerzbank revised its gold outlook to the downside. Accordingly, the bank predicts that gold will fall to $ 1,700 by the end of the year and $ 1,800 by the end of 2023. TD Securities, on the other hand, says that for gold to end its downtrend, it needs a heroic recovery north of $2,000.

Commerzbank drops gold claims As you follow, gold has made a leap from the bottoms in recent days. However, it is having a hard time continuing this move. According to strategists at Commerzbank, the gold price will remain under pressure due to the strong appreciation of the US dollar. Because of this, strategists dropped their precious metal claims. Underlying this view is the prediction that the dollar will remain strong for a while. In this context, strategists make the following assessment:

We expect the Fed Funds Rate to rise to 5% by spring 2023, 175 basis points higher than its current level. Therefore, the US dollar will likely stay stronger for a while. The wind blowing against gold will therefore continue for a valuable respite. We are revising our gold price claim downwards for the end of this year. Accordingly, we expect gold to close the year at $1,700 (previously $1,800).

In the middle, US ADP information came in slightly above expectations. This was interpreted as there would be no change in the Fed’s hawkish stance. According to strategists, the lower baseline, significantly higher interest rate forecast and lower forecast for the EUR/USD pair translates into a lower path for the gold price next year. Based on this, Commerzbank expects gold to reach $1,800 (previously $1,900) by the end of 2023.

“Until the yellow metal moves north of $2,000, the trend does not return”

Gold prices climbed above the spiritual resistance of $1,700. However, TD Securities strategists say, “Ignore the sirens’ music.” Strategists are confident that the downtrend will prevail with a high margin of safety against a reversal of the trend. Therefore, strategists explain their views as follows:

The margin of safety against any change in gold trend is extremely high. Unless the yellow metal makes a heroic recovery north of $2,000 before the end of the year, we are confident that the downward trend in prices will continue. Gold prices are now off-priced in the final phases of the march cycle, where restrictive rates contribute to a valuable underperformance relative to earlier rungs of the march cycle.

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