Gold Price Forecast: XAU/USD has held above $2,000 despite investors cutting their long positions – ANZ

Gold benefited from falling US yields and rose toward $2,040 on Tuesday. Economists at ANZ Bank analyze the yellow metal’s outlook.

Market’s expectations of an imminent rate cut by the Fed have been in a state of flux

Gold steadied before pushing higher as bond yields fell and the USD weakened. 

Market’s expectations of an imminent rate cut by the Fed have been in a state of flux following strong economic data. However, US bonds bounced back after Cleveland Fed Governor Loretta Mester said the central bank will probably gain confidence to cut rates later this year. 

Gold has held above $2,000 despite investors cutting their long positions. ETFs have cut their holdings of gold for 13 straight days, bringing this year’s net sales to 1.75Moz according to Bloomberg data.