Invesco’s Paul Syms, Head of EMEA ETF Fixed Income and Commodity Product Management, has commented on the gold price, saying: “After spending much of April and the first part of May above USD2,000, the gold price has declined to around USD1,970. Gold had pushed higher on the back of expectations that US rates were nearing the peak and the Fed could be in a position to cut rates before the end of the year. More recently, downward pressure on gold has come mainly from the rises in both the USD and bond yields.
“The Fed has suggested it may skip a rate hike in June but would weigh up the state of the economy, particularly around inflation, ahead of its July meeting. Aside from the near-term focus on the debt ceiling negotiations, the market will be looking through economic data and Fed commentary to gauge the possible path for US interest rates in the second half of the year.
“We believe gold remains an asset worth holding especially given uncertainties around the US debt ceiling, any further banking crisis, a correction in stock markets, escalation in the war or countless other geopolitical concerns.”
