The Gold Price retreated from recent highs last week. The continued strengthening of the dollar after an unexpected interest rate cut by the Swiss National Bank is putting pressure on the metal market.
The yellow metal reached a record high of 66,943 after the Federal Reserve maintained its forecast of at least three rate cuts in 2024. However, the yellow metal did not spend time at these highs, as the dollar recovered sharply on its cues from other majors. central banks.
However, prices gave some gains as a surprise rate cut from the SNB, coupled with dovish signals from the Bank of England, left the greenback as the only major high-yielding, low risk currency.
The dollar index rose 1.01% to a one-month high. Strength in the dollar was also supported driven by anticipation of PCE price index data- the Fed’s preferred inflation gauge- due later this week, as well as comments from a string of Fed officials through the week. Data from the core PCE index, the inflation gauge tracked by the Federal Reserve, will be released this Friday. This week, several Fed officials, including Chairman Jerome Powell, will speak at various events that could influence market reactions. In addition, most markets in Catholic countries are closed at the end of the week on Good Friday, which can delay market reactions
Technical Outlook – Gold Price
Gold retreated from a record high of 66,943 and fell to 66,022 last week. Yesterday, prices rose to 66, 242 and settled near the 66,022 level.
Gold is expected to remain somewhat positive until it trades above the key demand area of 65,300 and a possible drop to 65,800-65,750 could attract buying activity again. Upside levels is expected around 66,000-66,350.
However, 65,300 is important support and a break below that could extend the decline to 64,800-64,300.00.
Commodity Samachar
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