XAUUSD STILL STAY STRONG TO REACH 2250$

Despite stabilizing on Friday, March 15, gold prices had their first weekly decrease in four weeks as investors soured on the prospect of US interest rate reduction following pressure from data this week. price rises.

On March 15, the spot gold contract was nearly unchanged at 2,159.99 USD/oz at the close of trading. The gold contract saw its first weekly loss since mid-February 2024 this week, losing 0.8%, following a record high of 2,194.99 USD/oz last week.

Contracts for gold futures fell 0.3% to 2,161.5 USD/oz.

According to data released this week, US CPI consumer prices grew more than anticipated in February, while PPI producer prices also indicate that inflation is largely constant.

Any gain in gold prices from anticipated lower interest rates is already factored in. Policymakers will need to stick to tighter monetary policy for longer if inflation starts to increase once more.

Overestimated inflation keeps the Fed under pressure to maintain high interest rates, which puts pressure on gold. Precious metals with no yield are another type of inflation hedge.

For the first time since mid-January 2024, the USD index increased weekly, driving up the price of gold for overseas buyers.

Comment:

Investors reduced their expectations that the US Federal Reserve (Fed) would drop interest rates, which led to a decline in gold prices. This was because recent reports indicated that price pressure was higher than anticipated. This week's data revealed that US consumer prices increased more than anticipated in February, while producer prices again demonstrated the ongoing nature of inflation.

When the US Federal Reserve (Fed) meets on March 19–20 of next week, precious metals will continue be under pressure to take profits. The likelihood that the Fed won't be able to drop operating interest rates this year given the continuing and challenging nature of inflation is considerable. Demand for spending and consumption is still high in the interim. As a result, the USD will gain support and gold will continue to decline.

Comment:

The US economy released more good data in February than it did in January, which put pressure on global gold prices last week. In particular, compared to last month and the prediction, retail sales, industrial output, and initial jobless claims were all higher.

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Current position of the Gold price.

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