Gold remains underpinned near $1,860 as growing economic concern is breathing life into the gold market. As economists at TD Securities note, gold traders are increasingly questioning the Fed's willingness to hike into a recession.
Gold traders focused on remarks from Fed Chair Jerome Powell
“Upside flow from CTAs along with renewed growth in ETFs have supported the recovery. In turn, the improving momentum has seen the nearest trigger within trend following models flip toward further upside should prices break north of $1,900/oz, rather than a whipsaw lower.
“The recovery in the yellow metal is still on shaky ground as Fed Chair Powell signalled a willingness to sacrifice some economic growth in an effort to tame inflation, suggesting the Fed is comfortable with more pain before taking the foot off the brake, which should ultimately still weigh on precious metals.”