Gold Is Running Out Of Steam

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Gold Is Running Out Of Steam

Gold Is Running Out Of Steam

According to Commerzbank, the gold prices are not making any advance & seem to have run out of steam. This comes as the US Dollar remains weak against the Euro and other currencies.

Despite the US Dollar's weakness, the Gold prices have failed to capitalize on the situation. This is a sign that the Gold investors are now looking for fresh impetus.

Investors Look Towards Other Metals

Meanwhile, other metals such as Palladium, Platinum, and Silver have gained a lot during the same period. That also means investors are now looking at other metals rather than Gold.

Commerzbank added that the past momentum in Gold couldn't be justified. Maybe this means that Gold has run ahead of itself and is now playing catch-up.

For example, the interest rate cuts were not as sharp as to produce such a big jump in the Gold prices. So in a sense, we can say that the past momentum in the Gold was overexaggerated.

But, the one key factor that supported the Gold rise in the last few months was geopolitical risks. The increased geopolitical tension led to a flight towards save haven assets such as Gold. At that time, the US Dollar was not a popular option for safe-haven assets, which led the funds towards Gold.

In the year 2026, Commerzbank believes that Gold prices will reach $3600. In the long term, the conditions remain favorable for the Gold as the Federal Reserve will continue to cut rates.

Also, we can expect a higher degree of uncertainty over the US politics, tariffs, and the whole trade situation. Under these situations, the Gold will benefit a lot!

But in the coming months, Commerzbank doesn't expect a lot of movement in the Gold prices. But once again, a major geopolitical event could trigger a flight towards safety and lead to higher Gold prices.

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