Gold prices rose at the beginning of the week. At the moment, investors are focused on the speeches of the Fed representatives. Jerome Powell will report on the prospects of monetary policy in the United States on Wednesday. The regulator is expected to raise interest rates by 25 basis points at the meeting on March 22. Labor statistics (NFP) will also be crucial in choosing a further course of monetary policy on Friday.
Investors have been laying into gold prices a tougher regulatory rate stance for several weeks now. Powell's speech is expected to be “hawkish”. His comments could be positive for markets as closing short positions may come into play in case there would be more aggressive rate hikes than investors expected to hear.
The London Bullion Market Association (LBMA) holds a contest for the most accurate forecast of the average gold price on an annual basis. Current results were published on February 27.
The most pessimistic forecast of the average gold price is $1,594, while the most optimistic one is $2,025. The average estimate is $1,859.90, which is 3.3% higher than a year ago. According to analysts, the key factors affecting gold are the U.S. dollar dynamics, regulator’s stance and geopolitical setting.
Most analysts continue to be “bullish” on gold. It is also worth noting that the WGC has seen strong demand for gold from central banks since early 2023. In fact, demand is still at last year’s level.
On the technical analysis, gold formed a falling wedge on the 1-hour timeframe with an upward exit. The growth target may be updated local highs near the level of $1,860. Stop-loss can be placed when the wedge moves lower than the hammer shadow, formed at the end of February. It is the level of $1839.
Growth of the gold prices:
Take profit — 1860
Stop-loss — 1 839
This content is for informational purposes only and is not intended to be investing advice.