Gold Surges on Banking Turbulence and Inflation Fears, Eyes $2,000 Mark.

Gold futures for June 2023 are trading up at $1998, with an intraday high of $2002.40, as traders switch from the April contract to the June contract. The dollar is trading lower by 0.43%, and yields on government bonds are also lower, enhancing the demand for gold as a haven asset. The Federal Reserve is expected to either raise rates or pause rates at the next FOMC meeting, with a 43.6% probability that the Fed will pause its hawkish monetary policy of raising rates at each FOMC meeting. The PCE inflation report will be released tomorrow, and if inflation levels remain elevated, it could strengthen the resolve of the Federal Reserve to raise rates rather than take a pause.