Fed doping in gold

Gold gained value as expectations strengthened that the Fed is nearing the end of the tightening process following its 25 basis point rate hike. Experts set a target level of $2,050 per ounce for spot gold in the next 12 months. Gold received support from new signals that the Fed's aggressive monetary tightening cycle is nearing the end, despite the Fed re-emphasizing that combating inflation is its top priority. Spot gold tested $1,983 per ounce, while gram gold tested TL1,214. Fed Chair Jerome Powell said on Wednesday that after raising interest rates by another 25 basis points, officials were considering pausing the interest rate hike path due to the recent banking crisis, but that the rate hike was supported by a strong consensus. While dollar and bond yields fell, gold, whose appeal has increased, rose by up to 2 percent. On the other hand, the precious metal gave back some of the gains it made on Wednesday after Powell emphasized that inflation remains the top concern and that they will raise interest rates more than expected if necessary. Markets predict that gold’s safe haven status could be supported in the coming months, with futures markets predicting a rate cut as soon as possible this year, which would be close to a recession. Goldman Sachs analysts said in a memo that “the likelihood of gold moving higher on a growth shock that would push the economy into recession is significantly greater than the likelihood of a “soft landing” in the economy or a downward movement on the back of more Fed hawkishness, amid rising fears and rising recession risks.” Bank analysts set a new fixed target level of $2,050 per ounce for the next 12 months.