GOLD Analysis
Afternoon : A June rate cut to around 59% from 71% last Monday, according to the CME Fed Watch Tool, weak for GOLD?
Highlights:
- Gold prices stable pre-Fed meeting, focus on rate hints.
- Economic data: German & Euro Zone sentiment, US housing.
- Trading strategy: Sell near $2164, target $2146, stop loss below $2178.
Overview:
Gold prices remained stable amidst cautious investor sentiment leading up to the US Federal Reserve's pivotal policy meeting. The market eagerly anticipates clues regarding the potential timing of interest rate adjustments this year. Recent data revealing significant increases in US consumer and producer prices have tempered expectations for imminent rate cuts. All eyes are now on the outcome of the Fed's two-day monetary policy gathering, scheduled to conclude on Wednesday. While the Federal Reserve is widely expected to maintain interest rates at their current levels, market participants await insights into revised economic projections and interest rate forecasts.
Key economic data
This week's economic calendar includes the release of crucial data such as the German ZEW Economic Sentiment, ZEW Economic Sentiment from the Euro Zone, and Building Permits and Housing Starts from the US.
Support and Resistance Levels:
In the realm of gold trading, support for gold prices is anticipated at $2142, with resistance likely at $2178. For Gold MCX prices, support is projected at 65260, while resistance looms at 65920.
Proposed Trading Strategy:
Given the prevailing market dynamics, a prudent trading strategy involves selling on any upward momentum around the $2164 mark. This strategy targets a downward movement toward $2146, while implementing a stop loss below $2178 to mitigate potential losses.
Conclusion:
As the financial markets brace for the outcome of the Federal Reserve's policy meeting, gold prices remain ensconced in a range-bound pattern. Heightened uncertainty surrounding interest rate adjustments underscores the importance of vigilance and strategic planning for traders. By leveraging key support and resistance levels alongside pertinent economic data, traders can navigate market fluctuations with greater confidence and precision.
Support and Resistance Levels:
