Gold is up nearly 2% on the week as more investors turn to the precious metal amid a widespread risk-off sentiment in the marketplace.
With consumer prices rising 7.5% in January, the highest in 40 years, Goldman Sachs is now projecting seven 25 basis points hikes this year.
And gold is benefiting from that panic,” Gainesville Coins precious metals expert Everett Millman told Kitco News.
The immediate reaction to either of those moves would be a selloff for gold.
“Gold will be challenging $1,850, and we could see that breached on the next attempt,” Cholly pointed out.
In the meantime, gold’s safety range is between $1,800 and $1,850.
“The minutes of the January FOMC meeting, due out next Wednesday, will help to clarify whether officials would consider a 50bp hike.
“We still think that the unusually flat yield curve will prevent the Fed from being able to hike too aggressively this year and will force it to lean more on using quantitative tightening to drive long yields up.