Gold (XAU/USD) has been trading above the $2,000 mark since mid-December. Strategists at Commerzbank analyze the yellow metal’s outlook.

Significant interest rate cuts over the course of the year 

Beyond this short-term perspective, the direction of US monetary policy will be decisive for the further development of the Gold price. Accordingly, the wording of the communiqué and the subsequent press conference by Fed Chairman Jerome Powell following the Fed meeting on Wednesday is likely to be important.

We expect significant interest rate cuts over the course of the year and therefore a renewed rise in the Gold price.