Post by
mingzhu on May 04, 2023 3:06pm
gold is charging ahead
"Gold rose to a record high of $2,070 before paring gains back to the $2,050 mark on Thursday, the highest in 14 months, amid renewed turmoil in the US financial sector and dovish bets for the Federal Reserve. Shares from regional US lenders tanked after a handful of banks stated they are in talks with investors and partners, deepening concerns of instability in the industry and triggering a fresh flight to safety. Repeated threats to the stability of US banks hoarded bets that the Federal Reserve will not be able to maintain borrowing costs at an elevated level for long, pressuring the dollar and reducing the opportunity cost of holding non-interest-bearing assets such as bullion. This week, the central bank raised its funds rate by 25bps and omitted plans to tighten policy further, ramping up expectations that the central bank has completed its 500bps tightening cycle."