Gold Ends April on Upward Note on Prospect of Fed Slowing Pace of Rate Hikes

Gold looks set to end the last trading day of April on an upward note as the price recovered back above $1,900 an ounce.

Even with today’s gains, gold is set to end April at a lower level than it started as the impact of the Federal Reserve’s hawkish strategy has overridden the gains gold achieved in the wake of Russia’s invasion of Ukraine.

Yet while the Fed’s expected action has been the predominant driver for the price of gold in the last week, today has offered light relief to gold investors after disappointing US GDP growth figures released late yesterday raised the prospect that the US central bank may have to slow the anticipated pace of its rate hikes.

Gold Price – $/g

Looking ahead, gold looks set to be driven by two contrasting factors: as long as the war in Ukraine continues, gold will continue to find support due to its safe-haven appeal; yet any upside momentum is likely to be capped by the likelihood of interest rates rising across the world, reducing the appeal of the non-yield bearing asset of gold.

It is worth noting that after gold’s recent declines, the precious metal had started to look cheap versus its fair value. Today’s gains have narrowed that gap with gold looking set to trade between $1,900 and $1,950 an ounce as it is stuck between two equally strong bearish and bullish drivers. 

Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. 

As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwashing while investing sustainably.

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