It was a week in two parts of the gold market.
The good news came early as the Iran war ended, and seemingly for real this time
That news helped to extend a rally that started late last week and lifted gold from a low of $4022 to as high as $4382. The peak came just before the FOMC decision and it proved to be a gamechanger. The statement was hawkish and it was backed up by repeated assertions from new Chairman Kevin Warsh that they’re determined to hit the 2% inflation target.
He was deliberately vague on the specifics though and that has the equity market questioning whether higher interest rates actually coming. Compounding the pain for gold this week has been Goldman Sachs analysts cutting their targets. They revised their year-end forecast to $4900 from $5400 per ounce. “Our gold price views remain structurally constructive but tactically cautious, with near-term downside risk and medium-term upside risk,” they said.