Gold Trading Reminder: Moscow Suburban Concert Hall Attack, Bulls or "Comeback"?

Daocheng Technology Financial News -Spot goldLast week stabilized and rebounded, and once set a record high, opened last week in 2156.01dollar/Ounce, the highest hit $2222.92/ounce, the lowest hit $2146.16/ounce, and finally closed at $2165.31/ounce.Federal ReserveAfter the monetary policy meeting, expectations of three interest rate cuts during the year were retained, which put pressure on the dollar but helped gold rise to an all-time high above $2,220 an ounce.

Although the market looks a bit heavy, James Stanley, a senior market strategist, said he expects gold prices to eventually continue to move higher ahead of the Federal Reserve's June monetary policy meeting, when the Fed is expected to begin its easing cycle.

Colin Cieszynski, chief market strategist at SIA Wealth Management, captured market participants' expectations at the end of the Fed week. "I'm neutral on gold for the week ahead," said Mr. Cieszynski. "There's been a big move recently, with the dollar strengthening, there could be consolidation in the next few days, and it's the end of the month, plus a shorter trading week ahead."

Note: This Friday is the Good Friday holiday, and most countries in Europe, America and other regions are closed for one day this Friday (March 29), including CMEPrecious metal、United Statescrude oil、foreign exchangeAnd stock indexfuturesAll-day trading of contracts is suspended, under ICEBrentTrading in crude oil futures contracts was suspended throughout the day.

(One-hour chart of spot gold prices)

The Federal Reserve persisted in easing, and gold prices rose and fell last week

The Federal Reserve left the federal funds rate unchanged last week, but the dot plot points to three more cuts this year, with future rates rising to around 3.1 per cent. Markets were sceptical about the outlook, especially given slightly higher than expected inflation data in January and February. However, Jerome Powell, Fed chairperson, said inflation was expected to gradually fall to 2 per cent.

fxtmMarket analysis manager Lukman Otunuga pointed out that despite the Fed's signals to cut interest rates, the depth of the easing cycle will depend on future data. He explained that gold needs to wait for more disappointing economic data to support the current rally. Otunuga stressed: "Although the Federal Reserve has hinted that it may cut interest rates three times in 2024, the final decision will depend on economic data. If the US data released next supports interest rate cuts, gold bulls may make a comeback, however, bears are also lurking, waiting for the next opportunity to suppress prices."

This week's outlook

The latest Kitco News weekly gold survey shows that market experts are divided and cautious about the direction of gold prices going into the final week of Quarter 1, while retail investors are back on a bullish trend.

Last week, 15 Wall Street analysts participated in the Kitco News gold survey, and their views were fairly evenly distributed. Six experts, or 40%, expect gold prices to rise in the coming week, while four analysts, or 27%, predict prices to fall. Five experts, or 33%, expect the precious metal to trade sideways, or suggest a wait-and-see attitude in the coming week.

Meanwhile, with 170 votes cast in Kitco's online poll, the vast majority of retail investors expect gold prices to rise further in the coming week. 117 retail traders, or 69 per cent, expect gold prices to rise in the coming week. Another 25, or 15 per cent, predict lower prices, while 28, or 16 per cent, are neutral on the near-term outlook.