- Gold prices are trading flat, as the markets are a balance between the situation that depends on the data in the Federal Reserve with a high geopolitical risk.
- The US dollar stops temporarily, as US President Trump meets the national security team to discuss the next steps in addressing the Israeli conflict Iran.
- Xau/USD is trading in a narrow range where markets are waiting for developments on the Middle East tensions
Gold (Xau/USD) is traded within a narrow range on Thursday, with a merge between $ 3,360 and $ 3400.
These levels have been repeatedly and repeatedly as main support and short -term resistance on the last sessions.
with US (United States) Monitoring the Juntenth vacation, low trading volumes led to defeated price movements, although the basic risks remain evident.
Geopolitical tensions are still important engines for gold prices. Russia has issued a flagrant warning against the potential US military participation in Iran, describing it as a “very dangerous step” with “unpredictable negative consequences.”
Meanwhile, Israeli Defense Minister Israel Katz stressed the need for extensive attacks after recent escalation, which confirms the ongoing risks associated with the Iranian conflict Iran.
Katz specifically targeted the Iranian leader, Khounai, confirming the goal of neutralizing nuclear and missile threats.
On the economic front, gold prices face pressure from the renewed power of the US dollar in the wake of the latest policy update for the Federal Reserve. in spite of feeding Interest rates are fixed at 4.25 % – 4.50 % on Wednesday, suggested that Jerome Powell President’s suspension unexpectedly suspended that monetary policy may remain more strict than expected.
The US cabinet returns that have been dating long have decreased, but short -term returns have risen, reflecting continuous concerns about inflation.
Daily Digest Market March: Gold monitoring factors
- Iran’s increasing stock of enriched uranium has escalated fears of its nuclear ambitions, prompting the United States and Israel to repeat their opposition to Iran’s nuclear armed Iran.
- Russia has warned that any American military intervention in Iran would “be a very dangerous step with a really unpredictable negative consequences,” according to a spokeswoman for the Foreign Ministry Maria Zakharova.
- IIsraeli Defense Minister Israel Katz has announced that Iran’s Supreme Leader of Khamana “could not continue to exist”, which increases the geopolitical tension.
- President Donald Trump is scheduled to hold a second meeting in the chamber of the situation this week to assess the possible US participation in the Middle East crisis.
- Reports indicate that the meeting will include discussions on the Ford Underground facility, which raises the risks of potential preventive measures.
- The risks flow on oil and energy through the Strait of Hermoz. With approximately 20 % of global energy products that pass through this selection point, any disorder can lead to an increase in oil prices, increased inflation, and pressure on central banks.
- The Federal Reserve kept interest rates unchanged at 4.25 % – 4.50 % on Wednesday.
- While FED expectations indicate two pieces by the end of the year, President Jerome Powell struck a cautious tone, with an emphasis on an approach based on data and risk reference to inflation and definitions.
- Gold gathered for a short period of about $ 3400 after the price decision, but the US dollar has recovered, crowned more gains in the metal.
Technical analysis
From a technical point of view, the Fibonacci alternative was extracted from the lowest level in April near 2955 dollars to the highest level in April at 3500 dollars highlighted many of the main levels that traders closely watch.
At the time of this report, prices are currently trading about 3365 dollars, with immediate resistance in 23.6 % Fibonacci An alternative to April step, at $ 3,371. This level is above the 20 -day moving average (SMA) at $ 3350, which enhances the short -term importance of this region.
to Xau/USD To resume along its upward path, a break above $ 3,371 can open the door to the next level of psychological resistance at $ 3400. On top of that is the highest weekly level of $ 3,452, which may lead to high prices to the record in April $ 3500.
On the negative side, SMA break for 20 days can bring a 50 -day SMA on the horizon at $ 3,314 and towards another area of psychological support at $ 3,300.
At the same time, the bull’s momentum shows signs of mitigation through the RSI index (RSI) in 54, indicating a more neutral tone compared to the reading of 60 seen last week.
Daily gold scheme:
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of the risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate the price of gold due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
