FED & Gold Analysis and Trading Plan 20/03/2024

20 Mar

Gold Analysis and Trading Plan 20/03/2024
By PapaFinanceTalk

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Gold Economic Factors

Investors are bracing for the Federal Reserve (Fed) announcement today. The Fed will unveil its decision and fresh economic projections, which are being approached with heightened caution by market participants. Recent data suggests that the US monetary policy might keep interest rates elevated for an extended period.

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Gold Technical Outlook

Personal Perspective:
- I anticipate a price decline preceding the announcement of high interest rate maintenance.
- Based on historical behavioral patterns, gold tends to experience a sharp drop to clear initial buy orders, followed by a long wick retracement and subsequent rise.
- I believe a significant upward movement is likely after the Powell's statement regarding interest rate cuts.

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Key Support and Resistance Levels:

- Support: $2154-2155 (potential wick extension)
- Further Support: $2147
- Resistance 1: $2172 (coincides with Fibo Extension 161.8%)
- Resistance 2: $2176
- Resistance 3: $2183

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Caution:
Exercise caution while trading today due to the heightened market volatility surrounding the Fed announcement.

Wishing you all good luck in your trades!

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Disclaimer
This analysis is for informational purposes only and should not be construed as financial advice. Please conduct your own research and consult a qualified financial professional before making any investment decisions.