Gold price extends its advance amid mounting tensions in Eastern Europe. What’s more, the yellow metal shrugs off expectations of a hawkish Federal Reserve, strategists at TD Securities report.

Safe-haven demand is trumping a hawkish Fed

“While gold markets could be reflecting a growing cohort of participants interpreting the Fed's hiking path as being behind the curve on inflation, we also see rising risks of that the Fed will deliver a hawkish surprise to markets.”

“We expect the Fed to raise rates by 50bps in both May and June, and to deliver a 25bp hike at each meeting between July and December. And yet, prices have remained incredibly resilient despite this historically negative scenario for gold, as safe-haven flows have trumped fears of a hawkish Fed, with demand for gold surging in response to the war in Ukraine.”