GF Futures believes that at present, the panic about the liquidity risk of the global banking system has eased. After raising interest rates in March, there will be over a month of hiatus for the next rate hike. The banking crisis may further drag on US economy.
Given the demand for safe-haven, the slower tightening policy by the Fed combined with central bank’s gold purchases, will weigh down the U.S. dollar index and U.S. bond yields. These should push gold prices to rise.
