Gold Price Forecast: XAU/USD eyes downside on hawkish ECB hike and robust US GDP
Investors brace for critical events this Thursday. But the gold price seems to be in a lose-lose situation heading into the big day ahead, FXStreet’s Dhwani Mehta reports.
US Q3 GDP could offer fresh hints on talks of a potential Fed pivot
“All eyes now turn towards the US advance Q3 GDP print, with a rebound of 2.4% expected on a quarterly basis vs. -0.6% reported previously. A more robust reading than expected could douse dovish Fed expectations, rescuing dollar bulls from the recent downfall. Gold price, therefore, could stall its recovery mode and turn south towards the monthly lows.”
“The ECB rate hike decision will also be crucial to determining the dollar’s and the yellow metal’s next price direction. A hawkish 75 bps rate hike from the ECB could trigger recession fears, which could also bode well for the safe-haven greenback.”
See:
-
US GDP Preview: Forecasts from eight major banks, strong rebound to break two quarters of negative growth
- ECB Preview: Forecasts from 15 major banks, no obstacles to a 75 bps hike