Gold Rebound Seen as Corrective – Commerzbank
Gold has rebounded toward $4,200 per ounce after steep second-quarter losses, according to Commerzbank analyst Carsten Fritsch. The move is attributed to weaker US labor data and reduced rate hike expectations.
Commerzbank analyst Carsten Fritsch characterizes the recent gold price recovery as a corrective rebound. The metal has climbed back toward $4,200 per ounce following a sharp decline in the second quarter.
The rebound is supported by weaker-than-expected US labor market data, which has dampened expectations for further Federal Reserve rate hikes. Fritsch notes the move is corrective in nature, implying the underlying trend may remain cautious.
Gold traders are now watching for further economic data to gauge the sustainability of the rally.
Source: FXStreet Forex News