• Gold prices retraced, experiencing a pullback from recent highs as the US Dollar strengthened.
• Risk-off sentiment, lower Gold’s demand post-Fed announcement on monetary policy.
• Fed cautious on economy, eyes on inflation, labor market.
• US 10-year Treasury yields, Dollar Index rise, a headwind for Gold prices.

Gold prices (XAU/USD) fell from all-time highs of #2,223 and hit above the $2,200 figure on Thursday, clocking losses of 0.29% as the Greenback stages a comeback while US Treasury yields paired yesterday’s losses. A risk-off impulse and the lack of demand for the yellow metal above the $2,200 mark sponsored XAU/USD’s leg down toward the $2,179 mark.

Financial markets continued to digest the Federal Reserve’s (Fed) dovish hold following its March 21 meeting. Fed Chairman Jerome Powell and his colleagues acknowledged the economy is robust, the labor market is gradually cooling, and inflation remains high despite decreasing from higher levels last seen in the 1980s.

Fed officials reiterated they expect three rate cuts in 2024, though policy would stay pat unless data suggests the disinflation process is evolving. In the meantime, the US 10-year Treasury yield benchmark note has paired its losses, while the US Dollar Index (DXY) posted gains of 0.58% at 103.98