Economists at ANZ Bank discuss Gold (XAU/USD) outlook.

USD resuming its downtrend will be another tailwind

The probability of the US Federal Reserve pausing in the next meeting has risen, but strong economic activity will keep it hawkish in the short term. This could see the Gold price consolidating. 

Still, the Fed is likely to end its hiking cycle in H2 2023, which is structural support in the medium and long term. The prospect of the USD resuming its downtrend will be another tailwind.