“Why Commerzbank Expects Gold Prices to Remain Strong Amid US Debt Ceiling Crisis”

Arabictrader.com – In light of the continuation of the US debt ceiling crisis, Commerzbank economists expect that gold will continue to get the necessary strong support in light of the continuing dispute over the US debt ceiling, and that it is likely to remain above 2000 for the time being, while maintaining its reputation as a safe haven.

And the German bank experts added that any default by Washington in paying its debts, even if it is only temporary, will undoubtedly have serious negative repercussions on the US economy, making it likely that monetary policy will be eased to a greater extent than what is already priced in the market, and this will make Gold is relatively more attractive as an interest-free investment, but gold prices can be expected to decline if the US debt ceiling crisis is resolved.

It should be noted that in light of expectations that the US Federal Reserve will stop raising interest rates and increasing investor demand for gold globally, economists at ANZ Bank expected that the yellow metal would remain strong and rise during the coming period, especially with renewed concerns about pressure from US banks, slowing economic growth and increasing Geopolitical tensions, and all of this supports the high demand for investment in gold.

Experts at the Asian multinational bank pointed out that the growing expectations that the US Federal Reserve will start cutting interest rates is one of the factors that support gold, especially since there are signs of building long positions in ETFs, and this will be a strong support for gold prices during trading.

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