Gold at $4,000/oz Already Prices in 3-4 Rate Hikes, CICC Says; May Face Downside Risk

XAU0.28%
According to research released by China International Capital Corporation (CICC) on July 1, current gold prices around $4,000 per ounce have already priced in 3-4 rate hikes, exceeding market expectations embedded in interest rate futures. The note indicates that as oil prices decline and reflect further in U.S. short-term inflation data, gold market pricing of rate hike expectations could correct, potentially creating a rebound opportunity for short-term futures positioning.
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