With the Fed turning more dovish in the wake of the banking issues, US yields fell and the Gold price rose. Nevertheless, economists at ANZ Bank do not expect the yellow metal to extend its race higher for now.

Haven flows can continue into Gold if the situation worsens

“Further upside in the Gold price looks limited in the short term, as we see the federal fund rate at 5.5%.”

“Gold is well supported by US recession fears, easing inflationary pressure and more dovish monetary policy. Nevertheless, the upside looks limited in the near term amid easing banking risks and further Fed rate hikes.” 

“Haven flows can continue into Gold if the situation worsens.”

See – Gold Price Forecast: XAU/USD year-end target raised to $2,000 – Commerzbank