Article by: ETO Markets
With increasing consensus that the US Federal Reserve will likely switch to a more dovish stance and lower interest rates as early as March 2024, the gold market is excitedly awaiting the Fed's preferred inflation indicator. Markets are pricing in a 49% likelihood of a rate decrease by the Fed in March, even after the third-quarter US GDP data was revised upward.
The objective of the 50-DMA is to achieve a daily close above the 200-DMA, which will confirm the existence of a golden cross. As a result, every decline in the price of gold may be viewed as a favourable purchasing opportunity for a new upward posture. A new upswing toward the $… static resistance will be fuelled by acceptance over the multi-month high of $... The peak of $… will be the next target for gold purchasers.
On the other hand, a test of Tuesday's low of $… is expected to occur below the low of the previous day, which is $…, which represents the immediate support. If one looks further south, the $… barrier might save gold purchasers.