Gold Price Forecast: Banking turmoil to reinvigorate XAU/USD investor demand over the longer term – ANZ

Gold price is consolidating the previous decline so far this Wednesday. However, economists at ANZ Bank expect US banking stress to reinvigorate investor demand over the longer term.

Investor allocation to Gold remains low

“The market’s expectation of a smaller Fed rate hike was supported by inflation data that came in as expected at 0.5% MoM for June. Nevertheless, demand for the safe haven asset remained strong.” 

“Even with these gains, investor allocation to gold remains low.  We expect this banking turmoil to reinvigorate investor demand over the longer term.”