Gold Market Outlook 20 March 2025

Gold Market Outlook 20 March 2025

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Article by: ETO Markets

Gold prices are under pressure as markets brace for the Federal Reserve's upcoming policy decision, with expectations of rate cuts largely priced in, potentially capping further upside. Bearish macro factors include a strengthening US dollar, bolstered by robust economic data such as higher-than-expected retail sales and a strong Services PMI, which diminish gold's appeal as an inflation hedge. Additionally, any hawkish signals from the Fed suggesting a slower rate-cut trajectory could further weigh on prices. However, persistent geopolitical tensions, including the ongoing Israel-Gaza conflict and trade policy uncertainties under the Trump administration, continue to provide underlying support for gold’s safe-haven demand. Market sentiment remains cautious, with investors closely monitoring the Fed’s economic projections and Chair Powell’s commentary for insights into future monetary policy. 

From a technical perspective, XAUUSD is consolidating near $… after retreating from its recent peak of $… on March 20, 2025. The price action shows a formation of lower highs on the daily timeframe, suggesting weakening bullish momentum. The 14-day average true range (ATR) stands at $34.68, providing a baseline for typical price movement. However, the past few days have shown heightened fluctuations, with a daily range of $29.25 on March 19 and a more pronounced $38.85 on March 18. Turning to moving averages, the 55-day Simple Moving Average (SMA) at $… is currently well below the trading range, reinforcing the broader uptrend’s intact status. Should the price decline significantly, this level could transition into a robust support zone. Similarly, the 100-day SMA at $… holds even greater significance as a long-term trend indicator. The short-term support base just above $… remains a pivotal level to watch. However, if this support gives way, it could catalyze a deeper correction. Potential downside targets in such a scenario include the psychologically significant $… level, which has historical resonance as a round-number support, or the 20-day SMA at $…, which could serve as an intermediate cushion. Conversely, a breakout above the recent high of $… would signal renewed bullish strength, potentially targeting $… or higher, depending on momentum and volume confirmation. 

Want completely chart technical analysis
and trade recommendations on XAUUSD?

Want completely chart technical analysis
and trade recommendations on XAUUSD?

Want completely chart technical analysis
and trade recommendations on XAUUSD?

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The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
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Disclaimer

ETO Markets Limited is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023.


The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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Disclaimer

ETO Markets Limited is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023.


The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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