Gold flies past $2080 in the morning after

The Fed hiked rates by 0.25 bp in what appears to be a less hawkish stance, Powell also cautioned that the U.S. economy was slowing down considerably, fueling worries about a possible recession in the current year. This announcement diminished investors' enthusiasm for assets that carry higher risk, while encouraging them to seek safe havens like gold, which reached historic highs as a result.

Despite the Federal Reserve softening its hawkish stance by suggesting a potential halt in its rate hike cycle, Fed Chair Jerome Powell emphasized that interest rates could still increase in the future if inflation remains persistent.

Metals

The precious metal surged above $2080 in an unanticipated free run this morning breaking above tough resistance levels near $2030, also supported by another likely collapse of PacWest bank.

Gold futures also rose more than 1% to reach $2,064.15 per ounce, which is slightly below the record high of $2,089 per ounce that was set in 2020.

There was an upward movement in the prices of several precious metals. Silver futures surged by 1.5% and platinum futures gained 0.4%. Copper prices too

Meanwhile, copper prices benefited from a weaker dollar too, despite recent pressures on industrial demand.

The Dollar

The dollar was capped from earlier gains retreating 0.70% near $101. Aside from pricing in the end of the aggressive rate cycle, the third regional bank likely to collapse weighed on the alternative safe haven.

Stocks

Asian stocks traded in a tight range over fears of recession. Whilst on Wall Street stocks also dropped with the S&P 500 touching lows of 4,077 and the Dow near $33,405.

Stocks in general have been waiting to hear a dovish statement regarding the pause or perhaps the end of the cycle which is why markets took a downturn when the statement wasn’t as expected.