Gold edges higher
Last Wednesday’s more dovish than expected FOMC ‘Dot Plot’ saw gold fly higher and surge above $2,200 for the first time ever. The move came as the dollar fell on the forecast that there would be three 25 basis point rate cuts this year, unchanged from December’s prediction. But gold was unable to hold its initial gains and pulled back sharply on Thursday and Friday as the dollar renewed its upward trend. Silver behaved like gold, but on steroids. Both metals were a touch firmer in early trade this morning, as the US Dollar Index also pulled back a bit. The upside targets for gold and silver are pretty obvious, with the former once again targeting $2,200 and the latter looking to push back above $25 per ounce. Whether they achieve these levels this week or not appears to depend on the dollar to a large degree. The Dollar Index is just a tad below its own first upper target of 104.00. After that, it has its high from mid-February of 104.60 with which to contend. While there are some important Fed members due to speak this week, the main economic data release is Core PCE which is released on Friday when markets are closed. So, we may have to wait until next Monday for the prospect of fireworks.
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