Gold Analysis and Trading Plan 19/03/2024

Gold Analysis and Trading Plan 19/03/2024
By PapaFinanceTalk
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From a macro perspective, the prevailing sentiment suggests that the current price range is a corrective wave, gathering momentum for an upward move in the long term. However, in the short-term timeframe, there's been a sideways movement within the price range, following a bout of selling pressure in gold, presumably to mitigate risks ahead of the FED meeting tomorrow night.

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From a technical standpoint, the zone between 2155 and 2153 (highlighted in red) represents the Fibonacci levels of 50% and 61.8%, respectively, retracing from yesterday's upward leg. Consequently, there's a tendency for prices to rebound within this zone, indicating a potential reversal point. From this range, if gold fails to breach the resistance zone around 2155-2154, there's a high probability of an upward adjustment towards making new highs, driven by the prevailing economic trend of the Fed's interest rate reduction.

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The original resistance target remains around 2163 as the initial resistance level. If the flag pattern breaks out of this range, the price may head towards the next resistance level at 2170 accordingly.
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Please exercise caution in trading this week as the Federal Reserve's meeting, along with various policy announcements, may lead to significant fluctuations in the price of gold.