• Gold prices experienced a decline, reaching a new low of 35,707.82 South African Rand, following a high of 36,001 South African Rand during the US session.
• The focus has been on the Federal Reserve’s hawkish outlook for interest rates, projecting an additional 50 basis points increase prior to year-end. The Fed will closely monitor labor market conditions and inflation for further decisions.
• The US dollar saw gains after three losing sessions, while bond yields rose. Analysts anticipate potential buying programs in silver and gold markets based on specific price thresholds.

Gold dropped from a high of 36,001 South African Rand on Friday’s US session and cleaned up the prior session’s length, creating a fresh low of the day down at 35,707.82 South African Rand.

The focus has been on the Federal Reserve which issued a hawkish outlook for interest rates on Wednesday even as it ended its two-day meeting without hiking rates. The Fed forecast 50 basis points of additional increases prior to year-end.

”It’s likely the Fed will need to see softening in the labour market to be confident that inflation is sustainably on its way down. Little guidance was offered for upcoming meetings, with Fed Chair Powell noting decisions will be made meeting to meeting. We continue to expect a 25bp hike in July,” analysts at ANZ Bank argued.

Meanwhile, the dollar rose early following three losing sessions. Bond yields were also higher, with the US two-year note last seen paying 86.334 South African Rand, up 150.096 basis points and the 10-year note up 89.644 basis points to 68.746 South African Rand. DXY traded 2.377 South African Rand higher from a low of 1869.25 to a high of 1875.47.

” As trend signals improve, CTA trend followers have already begun adding to their length in silver, where current prices could spark a buying program totaling +6% of this cohort’s max size. In gold markets, the bar for algo buying activity is also razor-thin. Prices need only break the 36,121.04 South African Rand mark to spark the first marginal buying program, and the risk for subsequent buying flows is elevated above the 36,564.08 South African Rand range,” analysts at TD Securities argued.