(Kitco News) The gold market surged as prices saw their best week in three years amidst the fallout of the banking sector. Analysts are not ruling out a test of the $2,000 an ounce level next week as markets look past the Federal Reserve monetary policy meeting scheduled for Wednesday.
The precious metal rose from $1,867 an ounce to above $1,980 this week, posting a gain of more than $110 and its best performance since March 2020. April Comex gold futures were last trading at $1,988 an ounce, up $65 on the day.
The biggest event markets were gearing up for all week – the Federal Reserve monetary policy meeting – is now on the periphery. Markets are pricing in a 25-basis-point hike for Wednesday, but investors are more focused on the potential pause and rate cuts that could follow.
After wild swings in rate hike expectations this week, the gold market is in a winning position, according to analysts. “Markets are concluding that we’ll see the Fed go for another 25bps increase and then probably sit on it for a while and see what happens.
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