The Fed was in the market spotlight during the previous week, as the FOMC meeting took place. The market got the information that Fed is planning three rate cuts till the end of this year, and also revised their GDP growth rate projections for this year to the upside. This was enough information for the market to regain positive sentiment and push the value of USD toward the higher grounds.
During the week the price of gold shortly reached a new all time highest level at $2.221. However, the USD gains reverted the price to the downside, so the gold ended the week at $2.164. Since the start of March, RSI is moving within highly overbought momentum, while on Friday, the indicator reached the level of 64, however, still not indicating that the market started its path toward the oversold side. Moving average of 50 days, continues to diverge from MA 200, without an indication that the potential cross might occur anytime soon.
Since the market is still digesting the latest FOMC meeting, some further market volatility might occur during the week ahead with both the price of USD and gold. In this sense, the level of $2.150 might be tested in the week ahead, while the move to the upside could bring gold back toward $2.180.
Important news to watch during the week ahead are:
USD: Durable Goods Orders for February, CB Consumer Confidence for March, GDP Growth Rate final for Q4, Michigan Consumer Sentiment final for March, PCE Price Index for February, Fed Chair Powell speech on March 29.
During the week the price of gold shortly reached a new all time highest level at $2.221. However, the USD gains reverted the price to the downside, so the gold ended the week at $2.164. Since the start of March, RSI is moving within highly overbought momentum, while on Friday, the indicator reached the level of 64, however, still not indicating that the market started its path toward the oversold side. Moving average of 50 days, continues to diverge from MA 200, without an indication that the potential cross might occur anytime soon.
Since the market is still digesting the latest FOMC meeting, some further market volatility might occur during the week ahead with both the price of USD and gold. In this sense, the level of $2.150 might be tested in the week ahead, while the move to the upside could bring gold back toward $2.180.
Important news to watch during the week ahead are:
USD: Durable Goods Orders for February, CB Consumer Confidence for March, GDP Growth Rate final for Q4, Michigan Consumer Sentiment final for March, PCE Price Index for February, Fed Chair Powell speech on March 29.
