Gold Moves Higher Again But Struggling To Break $2000

Gold is higher again today following its rally post the Fed decision on Wednesday. It reached a high of $1978.86/oz but couldn’t break through $2000 again. Bullion is 0.3% higher to $1975.78 today following +1.6%. It is close to its intraday high of $1977.68. The USD index is down a further 0.4% and US yields are lower, which are supportive of gold.

• The Fed hiked rates 25bp as expected, but considered pausing given recent banking troubles, which was dovish but it was made clear that a cut isn’t imminent, which limited the upside in gold. Inflation still needs to come down but the Fed is close to its terminal rate.
• Bullion is down slightly on the week. Resistance remains at $2009.70, the March 20 high.
• Goldman Sachs revised up its target for gold to $2050 over the next year. It believes that risks are skewed to the upside given that it sees a recession as more likely than a soft landing in the US.
• A number of European central banks meet later and are all expected to increase rates despite recent banking turmoil. The BoE is forecast to hike by 25bp, the SNB 50bp and the Norges bank 25bp. In the US jobless claims, new home sales and Kansas & Chicago activity indices print.