Gold Price Forecast: XAU/USD short outlook looks strong – ANZ

Gold extended gains following the collapse of Silicon Valley Bank. The shifting expectations of US federal fund rates (FFR) are likely to see strong support for haven assets such as Gold, economists at ANZ Bank report.

Strong demand for safe haven assets

“The precious metals allure as a safe haven asset saw strong demand from investors. This was aided by a sharp reassessment of the direction of Fed policy. The market’s expectations of smaller rate hikes saw the 10y yield on Treasuries fall to a six-week low, while the USD erased its gains for the year.”

“The short outlook for Gold looks strong. The precious metal has jumped above its 50-Day Moving Average, signalling a change in momentum. With investor allocation relatively low, we expect this to continue.”