RLinda ! GOLD-> The 50-sma breakthrough opens up new potential

7 mar 2023

Gold prices are aiming for a cautious decline. Investors before Powell's speech don't know what to do. The price is fluctuating and there may be many pitfalls today. Let's sort it out:

Financial markets are looking forward to Federal Reserve Chairman Jerome Powell's testimony before Senate and House committees starting later today. I'm not sure we will hear much, but the fact is that Congress will get its semiannual monetary policy report.
The most important thing for investors in this case will be looking for hints about how the Fed will behave at the next meeting on March 21-22. Markets have increased expectations for rate hikes in recent weeks, bringing the expected rate to 5.5% by the end of the year

Recent inflation data (both CPI and the Fed's preferred PCE rate) have risen unexpectedly, hinting at tighter price pressures. This may require a tighter central bank over a longer period of time. Such an outcome likely does not bode well for gold.



Technically, the price is opening the way to the downside support at 1830, signaled by a break-down of the 50-hours sliding average and the support of the uptrend channel. The price returns to the range for consolidation again.
At the same time, because of the uncertainty, there is a possibility that the price might be stuck between 1845-1856. We continue to follow the news and press releases.

Regards to R. Linda!