GOLD remained motionless ahead of the Fed meeting
The Federal Reserve will announce its March monetary policy on Wednesday. Experts expect the benchmark rate to remain unchanged, along with the quantitative tightening program. The focus will be on forward guidance, with the Fed likely stating that they won't lower borrowing costs until there is more confidence in inflation reaching 2 percent.
The Fed may raise its GDP and core PCE deflator forecasts due to economic resilience and persistent price pressures. This could lead to a reduction in expected rate cuts for 2024 from three to two.
The following table shows projections from the December FOMC meeting.
If the Federal Reserve signals a greater inclination to exercise patience before removing policy restraint and shows less willingness to deliver multiple rate cuts, we could see U.S. Treasury yields and the U.S. dollar charge upwards in the near term, extending their recent rebound. Meanwhile, stocks and gold, which have rallied strongly recently on the assumption that the central bank was on the cusp of pivoting to a looser stance, could be in for a rude awakening (bearish correction).
Resistance: 2166 - 2175 - 2182
Support: 2146 - 2140 - 2137 - 2125
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