CUR - Gold rallies as Fed hints at rate hike pause; Goldman raises price forecast

2023-03-23 11:44:15 ET

Gold futures are rising Thursday, helped by declines in the U.S. dollar and Treasury yields after the Federal Reserve raised interest rates by 25 basis points but indicated it might pause its monetary tightening cycle.

Inflation likely would remain elevated if the Fed is unable to raise rates further, which would be " a green light for the gold market ," High Ridge Futures director of metals trading David Meger said.

Comex gold ( XAUUSD:CUR ) for April delivery +2% to $1,989.00/oz and May Comex silver ( XAGUSD:CUR ) +2.1% to $23.26/oz.

ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ), ( SLVP )

Among the top gainers in precious metals miners: Newmont ( NEM ) +3% , Barrick Gold ( GOLD ) +2.3% , Agnico Eagle Mines ( AEM ) +2.6% , Yamana Gold ( AUY ) +2.5% , Eldorado Gold ( EGO ) +2.4% , Alamos Gold ( AGI ) +4.7% , Gold Fields ( GFI ) +5.1% , AngloGold Ashanti ( AU ) +4.2% , Fortuna Silver Mines ( FSM ) +4.7% , Coeur Mining ( CDE ) +3.9% , First Majestic Silver ( AG ) +3.5% , Endeavour Silver ( EXK ) +3.2% , Hecla Mining ( HL ) +3.2% , Wheaton Precious Metals ( WPM ) +2.6% .

Goldman Sachs raised its 12-month price target for gold to $2,050/oz from $1,950, describing it as the best hedge against financial risks, and reiterated its bullish view on commodities in general.

Gold prices should slowly grind higher on central bank buying and geopolitical concerns, despite shorter-term risks such as a likely slowdown in Chinese physical buying, but a break above $2,100/oz would require the Fed to actually cut rates, which was not expected, Goldman said.

Earlier this week, gold touched a one-year high above $2,000 on safe-haven demand before pulling back .

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