TechFlow News, May 5: Strategists at State Street Global Advisors stated in a report that gold prices could rise as long as market consensus and the Federal Reserve’s forward guidance point toward future monetary easing. Money market and foreign exchange traders may be awaiting a viable U.S.-Iran peace agreement to reprice Fed rate cuts more aggressively.
They believe gold can perform well even if the Fed holds rates steady—as long as forward guidance signals imminent rate cuts. However, a sustained hawkish shift in monetary policy outlook could act as a headwind for gold—at least in the near term. Additionally, if oil prices remain at $100 per barrel as the new normal, this could also constrain gold’s upward momentum toward $5,000 per ounce. (Jinshi)
