The ongoing geopolitical and macroeconomic instability is driving safe-haven fund flows into gold. Economists at TD Securities expect the yellow metal enjoy further upside amid this backdrop.
Hawkish Fed backdrop still poses downside risks.“So long as material progress on ceasefire talks and de-escalation remains elusive, haven flows are likely to keep the yellow metal propped up against an increasingly hawkish Fed backdrop.”
“The 2y-10y curve flirting with inversion has further fueled talk of recession on the horizon, offering another positive dynamic for the gold market.”
“Rates markets are readying for the Fed to deliver a hawkish surprise to markets. On this front, with markets only pricing in roughly a 73% chance of a 50bp move in May, there is still room for the market to price in the full move that we are expecting, which could increase macro outflow pressures for precious metals markets.”
EUR/USD rebounds from two-day low but upside remains limited.EUR/USD bottomed at 1.1067 after the beginning of the American session and then rebounded to the 1.1135 area as stocks trimmed losses in Wall Street. The dollar lost momentum as US yields remain near daily lows.
GBP/USD consolidates above 1.3100 after US inflation report.GBP/USD continues to fluctuate above 1.3100 in the second half of the day on Thursday. Although the data from the US showed that the core PCE inflation rose at a slightly softer pace than expected in February, the US Dollar Index stays in positive territory.
Gold advances into $1940s as Russo-European energy tensions rise
XAU has been on the front foot, bouncing from the $1920 level into the $1940s. A ramping up of energy-related tensions between EU nations and Russia plus risk-off flows have benefitted the precious metal.
Crypto.com price could double in the next few weeks.Crypto.com price is currently at the midway point in completing a bullish setup. Therefore, market participants can expect massive returns for this token even before a breakout!