Gold prices extended their losses on Monday morning in London after Russian President Putin got a landslide election victory ahead of interest-rate decisions by the US Fed and the Bank of England this week. How then is the yellow metal trading today? Take a look at the 20 March Gold Price Technical Outlook.
20 March, GKFX – Gold is trading in a sideways manner around $1,316 in Asia, having recovered from the 3.5-week low of $1,308 yesterday.
Focus on Fed
Speculation is on the rise that Fed may revise higher its dot plot to four 2018 rate hikes. However, it would only push the Fed one step closer to the ultimate endpoint (peak rate) and hence may not yield big sell-off in gold.
On the other hand, an upward revision of 2019 and 2020 rate forecasts would lift the peak rate ceiling and open doors for a big drop in the zero-yielding yellow metal.
20 March Gold Price Technical Outlook
A break above $1,320 (previous day’s high) would open up upside towards $1,330 (March 14 high) and $1,340 (March 6 high). On the downside, breach of support at $1,310 (100-day MA) could yield a sell-off to $1,303 (March 1 low) and $1,300 (psychological level).
This article 20 March Gold Price Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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