Gold Hits New High Amid Surprises & Political Hangups
Why the Bullish Buzzer Is Audible
- Gold’s record smash: The metal shot up to $2,354 early Monday, but started the day near $2,310.
- Central banks are on the prowl: China’s big‑money hub is rumored to be buying big, feeding the gold surge.
- Geopolitical easing: Less tension in Gaza—Israel pulled back troops in the south and hinted at a ceasefire—boosts risk appetite and helps the dollar.
Fed Foibles and U.S. Wage Whispers
Fed’s rate‑cut plans are fuzzy. Workers’ monthly data showed stronger employment, which nudged the Fed to forecast only two cuts in 2024 rather than three. This left Treasury yields high, tightening the dollar’s grip and putting pressure on gold—which shelves no yield.
With the Fed’s minute clip still to drop next Wednesday, traders are breathing a sharp sigh of anticipation.
What’s on the Horizon?
- March CPI releases: A key indicator of whether the Fed will keep rates humming or start cutting.
- Fed minutes: Will reveal the next steps—good news for gold or a new slide?
Bottom Line
Gold’s record book was opened by a cocktail of Chinese central‑bank buying and Fed uncertainty, all on a backdrop of improved Middle East risk sentiment. The dollar’s march forward will likely temper gold’s rally in the medium term.
Traders are poised for next week’s data and Fed statements to chart the new long‑term trend. For the moment, markets enjoy a tense calm, ready to pivot on whatever the next releases deliver.
