Gold Could Head Lower
2023.03.14 10:49
prices have stabilized around 1877 USD per troy ounce. The precious metal experienced a lot of turbulence last week, dropping almost to a critical level within the current trend and then recovering just as quickly.
The market is watching risk attitudes and the topic of US interest rates. If borrowing costs continue to rise, this will limit the upside for gold. The road ahead will only go down. However, the coming days could be very informative from that point of view as well: the US Federal Reserve Board is meeting today, and it will be held behind closed doors.
Monetary policymakers are likely to discuss the sustainability of the country’s banking system. These conversations could affect the future of interest rates as well. At the moment, the physical demand for gold remains moderate.
On the H4 chart, the has formed a rising link to 1892.25. Today we expect a decline to 1852.80. Then we will consider the probability of the development of another growth link to the level of 1900.15. After its processing, we expect the beginning of another downward wave to 1750.00. Technically, this scenario is confirmed by the MACD indicator. Its signal line is above the zero mark and is directed toward the renewal of the maximums.
On the H1 XAU/USD chart, the local retracement target of 1893.39 has been worked out. Today the market is forming a downside link to 1852.82. After its processing, we expect a growth link to 1901.50. Technically, such a scenario is also confirmed by the Stochastic oscillator. Its signal line is under 50 and is directed straight downward.
Disclaimer: Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
