Gold Fluctuates Amidst Fed Rate Hike Expectations
Gold prices hovered around $4,330 per ounce on Wednesday, amidst choppy trading. The market's focus shifted from the expected interest rate hike by the Federal Reserve to the updated economic projections and Chairman Kevin Warsh's press conference.
The Fed is anticipated to raise interest rates by 25 basis points, with a spotlight on the dot plot and Powell's remarks. This move could bolster the dollar, potentially capping gold's gains. However, Goldman Sachs maintains a bullish outlook for gold over the medium to long term, with a year-end target of $4,900 per ounce.
Manpreet Gill, Chief Investment Officer for Africa, the Middle East, and Europe at Standard Chartered Bank, also believes that gold may have entered a new rally, potentially reaching $5,000 over the next six to twelve months. Ongoing central bank gold purchases remain the key driver of this trend.