Gold Price Forecast: XAUUSD to trend higher as the dollar has likely peaked – ANZ

The US dollar touched a 19-year high last month, which saw gold prices coming under pressure. But as economists at ANZ Bank see a decisive peak in the greenback, the yellow metal should enjoy some relief.

Current USD cycle has likely peaked

“The current USD cycle has likely peaked. The US Federal Reserve may be on track to deliver further rate hikes, but markets are now reassessing how high the fed funds rate will go, considering the sharp tightening in financial conditions.”

“Growth concerns are rising, with the US equity market discounting a reasonable chance of a recession.” 

“Further eroding the dollar’s appeal is the European Central Bank’s hawkish pivot, which is prepping the market for rate hikes and pushing the EUR higher. This should provide some relief for gold prices.”