Hawkish Fed Could Send Gold Back Toward $4,000 Next Week

Gold retreated after the Federal Reserve updated its projections to allow for a possible rate hike by year-end, reversing March's cut expectations. New Chair Kevin Warsh stressed price stability, saying, "The way to get monetary policy right is to deliver on the remit that Congress gave us to deliver on price stability." Spot gold last traded at $4,230.70 an ounce. Ole Hansen of Saxo Bank said the market is in limbo, with the 200-day moving average the key battleground and support above $4,000 needed to sustain the bull run that started near $1,615 in 2022 and peaked at $5,595 in January. Despite a U.S.-Iran peace deal, Simon-Peter Massabni of XS.com and David Morrison of Trade Nation highlighted short-term volatility from the hawkish Fed. Sameer Samana of Wells Fargo sees any drop below $4,000 as limited downside and a buying opportunity, noting gold would struggle only if nations curb deficits and defend price stability.