Commerzbank: in the short term, gold might go down

As the new year started, the gold price chalked up its gains. But still, Commerzbank strategists see a possibility of an upcoming decline in the precious metal market.

According to their words, the yellow metal growth was mainly caused by optimistic outlook shared by speculative financial investors, although this category of market participants is often fickle in their sentiment.

As it was stated by the Commerzbank specialists, a change in sentiment of ETF investors is required for a prolonged and stable price recovery. But they remain cautious, and, as considered by the company’s experts, they likely await the end of the US rate hike cycle.

So, the strategists at Commerzbank summed up that, in the short term, they suggest that setbacks are rather possible on the gold market.