Gold at record highs again after FED meeting

Fundamental News and Triggers

  • As the FED maintains hope for a rate decrease, gold prices reached a fresh high of $2224 (~Rs 66750). As was largely anticipated, the Fed did not alter its monetary policy during the meeting in March. 
  • Powell hinted that the Fed will soon be seeking to dial down the rate of QT, though he did not say when. The new 2024 dots still indicate three rate cuts.
  • Based on the CME Fed watch tool, traders were pricing in a 73.4% possibility that the Fed will cut rates for the first time as early as June.

Technical Triggers

  • Gold has cleared the previous resistance level of $2200 and has headed higher again, we could see this rally extending higher again towards $2250 (~Rs 68000).
  • Silver almost touched the $26 (~ Rs 77000) level, which is a very strong resistance area. Buy on dips on target of $27 (~Rs 80000) in the next few days.

Support and Resistance

 

 

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