- Gold holds near $2,000 per ounce and resumes upward movement in the face of waning bullish momentum on Wall Street and declining USD strength
- Banking sector uncertainty prompts investors to precious metals market. Rising bullion prices drive mining company stocks. Anglogold Ashanti (AU.US) gains more than 7%.
- Banking crisis could put downward pressure on the dollar and support a rebound in gold and silver prices. Rating agency S&P sees potential for hard landing due to tightening financing conditions and tighter credit standards;
- A drop in US GDP and higher-than-expected jobless claims boosted GOLD. Concerns about a recession have increased due to weaker macro data
Yesterday, Fed chief Powell indicated to Republicans that the Federal Reserve is preparing one more 25bp rate hike in May but in view of disinflation and the banking crisis, the market still rates the chance of no hike high.The prospect of a near-term Fed hike with a possible recession and regional bank turmoil is driving precious metals prices. IG data on gold market sentiment came out quite bullish. 59% of traders in today's survey see further upside potential for gold.
GOLD chart, H1 interval. The SMA100 (black) and SMA200 (red) averages formed a bullish gold cross formation. The price has rebounded from the 23.6 Fibo elimination of the upward wave that began on March 10. Buyers may want to test the resistance at $2,000 per ounce again. Source: xStation5
