Gold Analysis and Trading Plan 18/03/2024

18 Mar

Gold Analysis and Trading Plan 18/03/2024
By PapaFinanceTalk
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Technical Analysis:
- Gold has formed a descending triangle on a large timeframe and has broken through the key support zone at 2154.

- This is a significant support zone, and after breaking below 2154, the price attempted to pull back and retest the 61.8% Fibonacci level at 2161.

- We need to wait and see if the price can pull back above 2154. If it fails to pass 2154, there is a chance that it will continue to decline.

- The overall view is that gold has turned bearish, and we need to wait and see how the outcome of the US Federal Reserve's interest rate announcement will support the US dollar and US Treasury bonds.
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Economic Analysis:
- The market still expects the Fed to keep interest rates high for longer than expected and may delay cutting rates further.

- This is due to the higher-than-expected Consumer Price Index (CPI) or inflation figures and the higher-than-expected US Producer Price Index (PPI).

- These factors are likely to continue to put downward pressure on gold prices.

- However, it is important to follow the Fed meeting on March 19-20 and the statement by Fed Chairman Jerome Powell on March 22.
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Trading Plan:
- Pending Sell around Fibo Zone 61.8% 2160-2162.
- Follow Sell if it breaks below 2154.
- Stop loss at 2170
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Disclaimer:
This is for informational purposes only and should not be considered as financial advice. Please consult a financial professional before making any investment decisions.
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