ANZ: Gold prices to remain under pressure until Q1 next year

Gold rose as the dollar weakened, but ANZ strategists expect gold prices to remain under pressure until the first quarter of next year. Gold is gaining new support from the weakening dollar. However, rising U.S. real interest rates remain the main headwind for gold, a non-interest-bearing asset. Inflation remains well above the Fed‘s 2% target range, and the dollar’s strength could be reversed by hawkish Fed rhetoric.