The Federal Reserve's decision and monetary policy guidance in the coming week will be the focus of financial markets. A hawkish outcome could be positive for the U.S. dollar and yields, but bearish for gold prices.
Markets got overexcited by Powell’s comments, providing bullish investors with a reason to drive XAU/USD upwards. However, the picture has begun to change over the past few sessions, with a new storyline unfolding in the wake of disappointing consumer price data, revealing a stark reality: progress on disinflation is stalling and possibly even reversing.
We will know more about the Federal Reserve's plans next week when the institution announces its March decision. While policymakers are seen keeping their policy settings unchanged, they could provide different guidance and forecasts in response to new information on the macroeconomic front; after all, data-dependency has been the guiding principle.
Wondering how retail positioning can shape gold prices? Our sentiment guide provides the answers you are looking for—don't miss out, get the guide now! On the flip side, if buyers regain decisive control of the market and spark a bullish reversal from the metal’s current position, the first obstacle lies at the record peak established earlier this month at $2,195. Further upward movement will draw attention to trendline resistance near $2,205.Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.
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