At the beginning of the week, gold prices are being hampered by a stronger dollar and upcoming central bank meetings in several countries.
On Tuesday, the US Federal Open Market Committee (FOMC) will begin a two-day meeting to discuss interest rates. The monetary policy decision will be released on Wednesday.
Market participants expect the Federal Reserve (Fed) to keep rates at 5.25%-5.5%. The likelihood of maintaining the regulator's tight stance is justified by the persistence of inflation at both consumer and manufacturing levels.
High interest rates make owning non-interest-bearing gold less attractive.
Last week, data showed a solid increase in US consumer prices in February. Producer prices increased more than expected due to a spike in gasoline and food costs.
Meanwhile, the dollar is clinging near a two-week high against its peers, making the yellow metal more expensive for other currencies' holders.
Investors also believe the Bank of Japan may announce the end of its ultra-loose monetary policy on Tuesday. The Bank of England is expected to meet on Thursday and keep rates unchanged. Meanwhile, the Swiss National Bank may ease its policy.
Gold prices on the D1 chart are demonstrating the emerging uptrend.
The price rebounded from the trend resistance and started correcting. The local trend line may become the support for the price of gold.
The Bulls Power indicator volumes (standard values) on the H4 timeframe have moved into the negative zone, indicating a sell-side movement.
Signal:
Short-term prospects for gold suggest selling.
The target is at the level of 2095.00.
Part of the profit should be taken near the level of 2025.00.
A stop-loss could be placed at the level of 2195.00.
The bearish trend is short-term, so trade volume should not exceed 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
