As the world’s leading investment manager and financial market journalist, I have conducted a detailed analysis of the current movements in the gold market. It is evident that the gold bulls are not showing much aggression at this moment, as the bears have been dominating the market in recent trading sessions.
Since February 12, 2024, the bears have been in control, and it is likely that exhaustion will set in among the gold bulls, especially with the Federal Reserve expected to maintain short-term interest rates in today’s meeting, just hours away.
Looking at the weekly chart, gold futures are still trading above the 9-day moving average after breaking out from the strong buying support level at $2025 in the second week of February 2024. Despite favorable geopolitical conditions, gold futures could experience a selling trend.
In the daily chart, gold futures seem poised for a temporary uptick before a potential downturn, as the bulls struggle to breach the immediate resistance at $2470. The gold bears are preparing to open short positions between $2074 and $2492, with a stop-loss set at $2525.
In the 1-hour chart, gold futures may face selling pressure if short-term interest rates are maintained as expected. It is highly likely that gold futures will experience a breakdown following the Federal Reserve’s announcement.
In conclusion, a downward crossover of the 9-day moving average below the 18-day moving average could signal a short-term opportunity for traders to go short with a target price of $2442. A break below this level could push gold futures towards the significant support at the 200-day moving average, currently at $2410.
Analysis: In simple terms, the current trend in the gold market is bearish, with the bears in control and the bulls struggling to make a significant impact. Traders should watch for a potential breakdown below key support levels, which could lead to further downside momentum in gold prices. It is essential to stay informed about economic events, such as the Federal Reserve’s decisions, as they can have a significant impact on the market.