Gold gains after U.S. Fed maintain accommodative stance
Goldman Sachs sees gold at $2,000 over the next six months and it’s too early to call bitcoin the new gold.

Gold prices rose on Thursday bolstered by the U.S. Federal Reserve’s pledge to maintain easy monetary policy to aid economic recovery, while a weaker dollar provided further support.
The spot gold rose 0.19% to $1785.04 per ounce.
The Federal Reserve held interest rates and its bond-buying program steady on Wednesday after its two-day policy meet despite taking a rosier view of the U.S. economic recovery.
Fed Chair Jerome Powell also said the coming price increases would almost surely be of a passing nature, and not present the sort of persistent problem that would force the central bank to begin raising interest rates sooner than expected.
"Bonds rallied, USD retreated sharply, and gold rallied to highs of the day after a test of the lows of the range earlier after Powell took great pains to emphasize there will be no tapering in Fed's accommodative policy," said Tai Wong, head of metals derivatives trading at BMO.
"The Fed has probably set gold up for a test of the top of the $1,800-$1,810 range, but it is unclear whether there is enough momentum to break above without a deeper drawdown in the dollar," he added.
U.S. President Joe Biden plans to unveil a sweeping $1.8 trillion package for families and education in his first speech to Congress.
Gold tends to benefit from widespread stimulus measures from central banks because it is viewed as a hedge against inflation.
Meanwhile, the U.S. trade deficit in goods jumped to a record high in March, suggesting trade was a drag on economic growth in the first quarter, but that was likely offset by robust domestic demand amid massive government aid.
Goldman Sachs, meanwhile, sees gold at $2,000 an ounce over the next six months and said it was too early for bitcoin to compete with gold for safe-haven demand.
The analysts see the price of the yellow metal rising 12% to $2,000 an ounce over the next six months, highlighting its "real use" compared to bitcoin.
"While bitcoin benefits from greater liquidity, it suffers from lack of real use and weak [environmental, social, governance] scoring due to its high energy consumption which makes it vulnerable to losing store of value demand to another better designed cryptocurrency," the analysts said.
Edmund Moy, former Director of the US Mint and now chief market strategist at gold seller Valaurum, agreed.
"Cryptocurrencies like bitcoin are many things but I do not consider them a store of value yet because they do not have a long history of maintaining its value, the way gold has," he told Insider. "I could change my mind…Ask me again in two thousand years."
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