March 22, 2023 (MLN): Gold prices rebounded slightly in early Asian trade following the largest one-day loss in about six weeks overnight.
The dip in prices was attributed to nerves over the stability of the banking sector, but DailyFX believes that the outlook for the precious metal remains positive despite the recent shift lower.
The focus for gold traders is now on the Federal Open Market Committee (FOMC) meeting later today, which will guide gold's next move.
A more dovish Federal Reserve will allay further rate-hike fears while worries that the current global banking crisis may flare up again, giving the precious metal an ongoing safety bid.
According to DailyFX's senior strategist Nick Cawley in a note, "a more dovish Federal Reserve will allay further rate-hike fears while worries that the current global banking crisis may flare up again, giving the precious metal an ongoing safety bid."
Spot gold rose 0.2% to $1,943.10/oz, signaling a possible technical rebound after the recent dip. Despite the short-term volatility, the precious metal remains a popular choice for investors looking for a safe haven asset in times of economic uncertainty.
With ongoing concerns about the global banking sector and the potential for further economic instability, gold is likely to remain a popular choice for investors seeking a safe haven asset in the coming weeks.
