Article by: ETO Markets

Even if the inflation report is not as bad as projected, market expectations for rate decreases in the March and May policy meetings are not anticipated to rise dramatically. In order to contemplate a shift in the monetary policy approach, Fed policymakers require accurate inflation statistics for several months. Consequently, officials would not be compelled to quickly reverse their restrictive policy position by a single excellent gradually decreasing inflation data point.

The price of gold fluctuates within the trading range. The precious metal's overall trend is sideways; it is currently trading in a symmetrical triangle that could break out in either direction. The probabilities, however, somewhat favor a move in the trend's direction prior to the triangle forming, in this example, upward. A breakout would be indicated by a clear breach above or below the triangle boundary lines. The current support stays around $… level while the resistance awaits at the February high $...