Bank of Tanzania (the Bank) is mandated to license, regulate and supervise banks and financial institutions comprising commercial banks, microfinance banks, community banks, development finance banks, financial leasing companies, mortgage financing companies, microfinance service providers, credit reference bureaux, bureau de changes and representative offices of foreign banks. Also, the Bank is mandated to regulate and supervise all financial matters of Social Security Schemes operating in Tanzania. The primary objectives of regulating and supervising banks and financial institutions are to maintain the stability, safety and soundness of the financial system; and to reduce the risk of loss to depositors.

Everyday individuals, businesses and government trade/exchange goods and services for money. Money is therefore used as main medium of exchange. A payment system can be considered to be a mechanism to move money between a payer and payee. In Tanzania cash is the most popular medium/instrument of payment. However, other non-cash payment instruments have been introduced including Paper-based instruments (cheques, payment orders, bills of exchange, promissory notes and), Electronic Funds Transfers (EFTs), card payments (credit cards, debit cards, prepaid cards), internet banking, mobile banking, mobile money. The Bank of Tanzania is empowered by the National Payment Systems (NPS) Act 2015 and the Bank of Tanzania Act 2006 to regulate to regulate and supervise the payment systems services and products offered by both banks and non-bank institutions in Tanzania. Bank of Tanzania collaborates with various stakeholders in strengthening the safety and smooth run of the payment systems in the country. These stakeholders include: Financial Institutions, infrastructural services providers like telecommunication companies, Consumers of payment systems like individuals, companies and governments, Regulatory authorities in the financial sector like the Dar es Salaam Stock Exchange, Providers of payment services like SWIFT, and operators of payment cards, the Capital Markets and Securities Authority, Regional and International Financial authorities like the East African Community, International Monetary Fund and the World Bank.

Gold price attracts fresh buying near the $1,995 area on the first day of a new week and maintains its bid tone through the first half of the European session. The XAU/USD is currently placed around the $2,010-$2,011 region, up over 0.40% for the day, and for now, seems to have stalled Fridays retracement slide from the vicinity of over a one-year peak. Looming recession fears benefit the safe-haven Gold price Growing worries about a deeper global economic downturn turns out to be a key factor lending some support to the safe-haven Gold price amid expectations for an imminent pause in the rate-hiking cycle by the Federal Reserve (Fed). That said, impressive bank earnings seem to have eased fears about a banking crisis that unfolded in March. Adding to this, the Retail Sales report released from the United States (US) on Friday suggested that the economy is not so bad and remained supportive of a generally positive tone around the equity markets. This, along with a modest US Dollar (USD) strength, is holding back bulls traders from placing aggressive bets around the XAU/USD and capping the upside, at least for the time being. Modest US Dollar strength keeps a lid on Gold price Despite the softer US consumer inflation and the Producer Price Index released last week, Fed Governor Christopher Waller on Friday called for further rate hikes and said that the job was still not done as inflation remains far too high. The markets were quick to react and are now pricing in a greater chance of another 25 basis point (bps) lift-off at the next Federal Open Market Committee (FOMC) policy meeting in May. This remains supportive of elevated US Treasury bond yields, which, in turn, assists the USD to build on Fridays goodish rebound from a one-year low and gain follow-through traction for the second successive day. A stronger Greenback tends to undermine demand for the US Dollar-denominated Gold price. Traders now look to US macro data for short-term impetus The aforementioned mixed fundamental backdrop warrants some caution before positioning for any further appreciating move for the XAU/USD. Nevertheless, Gold price manages to hold above the $2,000 psychological mark as traders now look to the US economic docket, featuring the release of the Empire State Manufacturing Index for a fresh impetus later during the early North American session. Apart from this, the US bond yields will influence the USD price dynamics, which, along with the broader risk sentiment, should contribute to producing short-term opportunities around the XAU/USD.

From a technical perspective, the emergence of fresh buying on Monday favours bullish traders and support prospects for an extension of the recent strong upward trajectory witnessed over the past month or so. That said, sustained weakness below the $1,995-$1,990 region, will negate the positive outlook and prompt some technical selling. The Gold price might then accelerate the corrective decline towards the $1,965-$1,960 intermediate support en route to the $1,950 horizontal zone. On the flip side, bulls might now wait for some follow-through buying beyond the $2,020 area before placing fresh bets. The Gold price might then climb to the YTD peak, around the $2,047-$2,049 region touched last Thursday. The subsequent move up has the potential to lift the XAU/USD back towards retesting the all-time high, around the $2,070-$2,075 region touched in August 2020.