Flows into gold have slowed after the precious metal failed to breach the $1,900 an ounce level despite higher-than-expected inflation numbers and a disappointing employment report out of the U.S.
The last time these were updated was back in March, with the median GDP growth forecasts standing at 6.5% in 2021, 3.3% in 2022, and 2.2% in 2023.
One scenario that would be good for gold is if the Fed doesn’t offer any new hints about tapering while maintaining its view that inflation is transitory in light of the higher CPI numbers.
“If the central bank remains dovish and continues to preach the ‘transitory’ mantra, this could inject gold bugs with fresh inspiration to challenge the $1,900 psychological level,” Otunuga said.
If this fails to be the case, or if the signals are less clear, yesterday afternoon’s upswing will doubtless have been a foretaste of what can be expected in the second half of the week,” Fritsch said on Tuesday.