Gold prices rose in the morning, but remained largely within a recent trading range as a slew of signals from the Federal Reserve reiterated the prospect of higher-for-longer U.S. interest rates. Gold prices saw some relief this week as the dollar fell sharply from three-month highs. But further losses in the greenback now appeared limited, as Treasury yields remained close to recent peaks.
The minutes of the Fed’s late-January meeting, released on Wednesday, showed that the bank was in no hurry to begin cutting interest rates early. This notion was echoed by a slew of Fed officials this week, who cited concerns over sticky inflation and persistent strength in the U.S. economy. The CME Fedwatch tool showed traders pricing in a 53.6% chance for a 25 basis point cut in June, and a 28.7% chance for rates to remain steady. The latter rose from a 19.7% chance seen last week. The prospect of higher-for-longer rates bodes poorly for gold, given that it increases the opportunity cost of investing in the Gold.
Spot Gold rose 0.2% to $2,029.78 an ounce, while Gold futures expiring in April rose 0.3% to $2,039.55 an ounce
CURRENTLY GOLD IS MOVING ON UP TREND.
Expecting correction up to 2025.50
Today’s important levels for trading are 2019.56, 2025.85, 2031.77 and 2038.06
Trading idea for today: Buy on Dip
Trade setup:
Looking pullback Buy around@2025.50 Deeper Buy around@ 2021.50
Safe swing sell below 2017.50
Safe swing buy above 2033.50
Important Event :
🔴Unemployment Claims,
🔴Flash Manufacturing PMI,
🔴Flash Services PMI and
🟠Existing Home Sales