The war trades around Ukraine continue to unwind today. Gold nearly hit an all-time high on March 8 but came just shy and it's been a swift retreat since. It's down $43 today and is now flat on the month at $1908.
The summer 2021 highs along with $1900 could act as short-term support but it will be tough to engineer a quick turnaround. Negotiators from Russia and Ukraine are speaking at the moment and there are hopes for a ceasefire built into markets but I think it would take a sharp escalation in Russian hostilities to restart the momentum.
The second concern is the Fed. The market is weighing whether Powell will pivot to a more-hawkish stance in the FOMC statement or press conference. Warnings about inflation could preclude a 50 bps hike at the next meeting in May.
