Gold Prices Poised to Rise as Fed Rate Hike Bets Fade

Commerzbank's analysts are optimistic about gold's prospects due to fading expectations of additional Federal Reserve rate hikes, which have weakened the US dollar and reduced the opportunity cost of holding non-yielding assets like gold.

The bank notes that futures markets have priced in a lower probability of further rate increases, with some even anticipating cuts in 2026. This has put pressure on the US dollar, making gold cheaper for international buyers and boosting its appeal as a store of value.

Gold has already shown resilience in this environment, holding above key support levels. A weaker dollar, combined with persistent geopolitical uncertainties and central bank buying, provides a supportive backdrop for further appreciation.