Baxia Markets
March 28, 2024

Gold Price Holds Steady Above $2,200 Amid US Data Anticipation

market analysis header image

Gold price (XAUUSD) maintains its strength above $2,200 in Thursday's late European session, demonstrating resilience ahead of the United States core Personal Consumption Expenditure (PCE) Price Index data for February, slated for Friday release. Market sentiment remains cautious as investors await crucial economic indicators.
Gold Price Holds Steady Above $2,200 Amid US Data Anticipation
The Federal Reserve (Fed) is closely monitoring the PCE data, as it could influence the central bank's decision on interest rates. A report indicating persistent price pressures might prompt the Fed to temper rate cut expectations, potentially boosting yields on interest-bearing assets like Treasury bonds. Conversely, softer inflation figures could bolster expectations for a rate cut in the June meeting, aligning with the narrative of potential rate adjustments in 2024.

Maintaining a cautious stance on rate cuts, the Fed aims to strike a delicate balance to avoid exacerbating inflationary pressures or unduly pressuring the labor market and the broader economy. Meanwhile, the US Dollar Index (DXY) hits a six-week high at 104.72, reflecting market apprehension ahead of the release of the Fed's preferred inflation gauge.

In the daily digest of market movers, gold price climbs above $2,200 amid anticipation of the US core PCE Price Index data. Fed policymakers' hawkish rhetoric may persist if inflation remains stubborn, potentially weakening gold's appeal due to increased opportunity costs.

From a technical perspective on the 1-hour timeframe, XAUUSD shows volatility during the London trading session, evidenced by expanding Bollinger bands. The bullish trend, indicated by the EMA 50 floating above EMA 200 since February 19th, remains intact. Strong momentum is evidenced by bullish oscillator indicators, with RSI trading above 40% and MACD signal line hovering high above the 0 line. Key support levels to watch include the bottom side of the value area at $2161 and the EMA 200.

Overall, XAUUSD maintains a short-term bullish outlook, with potential for market dynamics to shift based on the impending US economic data and Fed policy considerations.

Key Takeaways:

  1. Gold price remains firm above $2,200, showing resilience ahead of US data.
  2. Fed's cautious approach to rate cuts adds uncertainty to gold market sentiment.
  3. US Dollar Index hits six-week high, signaling market apprehension before data release.
  4. Technical analysis suggests short-term bullish outlook for XAUUSD.
  5. Market awaits US core PCE Price Index data to gauge inflation and Fed policy trajectory.

Key Economic Releases to Watch Today


Forecast -0.2% vs Previous 0.3%


Forecast -3.2% vs Previous 4.9%

USD,  Chicago PMI

Forecast 45.9 vs Previous 44.0



News Article CTA - Trading with Baxia Markets 2024

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

Subscribe by Email