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Gold and Silver: buy and hold until the Fed meeting is over!

18 March 2024 121
Gold and Silver: buy and hold until the Fed meeting is over!

Silver and gold showed excellent results when testing the Pre-FOMC Announcement Drift effect. It means that the prices of the metals tend to rise 24 and 48 hours before an announcement of the FOMC meeting results.


The next FOMC meeting results will be disclosed on March 20 at 18:00 GMT.

So, there is an opportunity to make profit on the market anomaly.


Of course, inspiring results of strategy tests are great. But one shouldn't rely solely on that. 


Let's see what fundamental factors support the price growth of the precious metals:


1. Many countries around the world, including the US, are set to hold presidential elections this year. Events like these will bring certain confusion and uncertainty, prompting investors to turn to safe-haven assets such as gold and, to a lesser extent, silver.


2. Central banks keep buying gold, supporting demand. The World Gold Council (WGC) stated this in a January report. 


3. The Silver Institute forecasts a doubling of prices amid the ongoing supply deficit and increased demand for the metal. 


4. The markets are dominated by expectations of monetary policy easing in the US in early summer. Data provided by the London Stock Exchange Group support these forecasts. As the Fed loosens its monetary policy, precious metals become more affordable in terms of the US currency.


5. CFTC reports confirm the speculators' optimistic attitude towards both gold and silver.

Gold and Silver: buy and hold until the Fed meeting is over! - Photo 1

Gold and Silver: buy and hold until the Fed meeting is over! - Photo 2

Trading plan


1.Buy GOLD on March 18 at 18:00 GMT (21:00 Moscow time).

Closing the deal: Take Profit 1 = 2,177, Take Profit 2 = 2,200.

Or exit the market on March 20 at 17:59 GMT (20:59 Moscow time).

Stop Loss should be placed below the minimum of March 17, or below the support level of 2,140.


2.Buy SILVER on March 19 at 18:00 GMT (21:00 Moscow time).

Closing the deal: Take Profit 1 = 25.5, Take Profit 2 = 25.9.

Or exit the market on March 20 at 17:59 GMT (20:59 Moscow time).

Stop Loss should be placed below the minimum of March 18, or below the support level of 24.7.



May fortune and success be with you!

This content is for informational purposes only and is not intended to be investing advice.

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