Gold hits $1740
Gold is up $8 to a session high at $1740 in a small burst of buying. The Fed is a big question mark for gold tomorrow but if Powell continues to be dovish and argue for keeping rates pinned and looking through the reopening bump, then there's some room for upside.
At the same time, I see risks as two-sided because the dots are likely to move into 2023.
In the last forecast, five of 17 members expected a rate hike in 2023, and just one forecast a hike in 2022. If three dots move into 2023, that would be the consensus and might spark some headline selling in gold.
Technically, the $1740 line is significant right here.
