Gold Slipped slightly but remained above key support levels of 2153.50 as markets remained largely averse towards precious metals before a key Federal Reserve meeting this week. Gold prices recovered some lost ground this week, retaking the $2,150 an ounce support level on Monday as uncertainty over the Fed’s stance persisted. But the yellow metal also remained well below record highs hit earlier in March.
Strength in the dollar was a key weight on gold prices, as anticipation of the Fed meeting and dovish signals from the Bank of Japan kept traders largely biased towards the greenback. The dollar index rose to a two-week high on Tuesday after clocking strong gains over the past two sessions. The Fed is widely expected to keep interest rates steady at the conclusion of a two-day meeting on Wednesday. But markets feared any potentially hawkish signals from the central bank, particularly a dialing down in its interest rate cut forecasts, following hotter-than-expected inflation data for the past two months.
Spot gold fell 0.1% to $2,158.26 an ounce, while gold futures expiring in April fell 0.1% to $2,161.35 an ounce by 01:30 ET (05:30 GMT)
CURRENTLY GOLD IS MOVING ON UP TREND.
Expecting correction up to 2155.50
Today’s important levels for trading are 2149.48, 2156.51, 2167.03 and 2174.06
Trading strategy for today: Buy On Dip
Trade setup:
Pullback Buy around 2155.50 Deeper Buy around 2147.50
Safe swing sell below 2143.50
Safe swing buy above 2167.50
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