Gold Price Forecast | 17th March 2023


Key news events today

No major news events.

What can we expect today?

The hawkish stance of the European Central Bank (ECB) and the coordinated efforts to prevent a banking crisis from spreading could indeed reduce the safe-haven demand for non-interest-bearing assets such as gold.

When central banks adopt a hawkish stance, interest rates tend to rise, which can increase the attractiveness of interest-bearing assets such as bonds. As a result, investors might shift their capital from non-interest-bearing assets like gold to assets that offer higher yields.

Moreover, if efforts to prevent a banking crisis from spreading are successful, investor confidence in the financial markets may improve, leading to a reduction in risk aversion. In such a scenario, investors may be more likely to invest in riskier assets, such as equities, and reduce their holdings in safe-haven assets like gold. However, it is essential to consider other factors that could influence gold prices, such as global economic uncertainties, geopolitical tensions, and changes in investor sentiment.

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