As long as retail, governmental, and institutional investors remain wary of riskier assets, we can expect gold prices to remain elevated.

However, with so many central banks expressing concerns over the dollar's strength, many market players seem to be in profit-taking mode, which has seen the DXY stall at 105.97.

With rhetoric from policymakers in the US now surely more hawkish, there seems to be a generous upside for the USD vs. all major currencies in the coming months. 

The disappointing retail data had an immediate and severe effect on the EUR/USD, with price falling below 1.078 for the first time since 20th February.

The Fed also raised its projections for economic growth in 2024, up from 1.4% to 2.1%, signalling that the US economy’s much-discussed “soft landing” was in sight. It’s rare to have strong economic growth, decreasing inflation and a simultaneous decline in interest rates.