After yesterday's series of "Consumer Price Index" (CPI) data reports, the market is now firmly of the opinion that there will be "NO" interest rate cuts ahead of the FOMC meeting scheduled to take place on 19-20 March 2024.
The market now sees that the existing interest rates in America are expected to remain longer following yesterday's CPI report showing an increase in inflation readings in the country.
The market will now focus on the release of the "Producer Price Index" (PPI) data report scheduled for tomorrow. This data report is able to provide a comprehensive overview of the real situation of inflation "trends" in America, as well as being able to trigger the direction of the gold market.
Market players are still expecting the Fed to cut interest rates at the June 2024 FOMC meeting.
Gold was seen trading low yesterday immediately after the release of the CPI data report. However, the ongoing geopolitical pressure is still seen to be able to increase demand for the gold market.
Recently, Ukraine has reportedly retaliated against Russia and caused serious damage to the country's main oil refinery. Ukraine is reportedly trying to launch an attack on Russia's nuclear power plant.
Technical Analysis
Based on the daily chart, the drop in gold prices yesterday is considered a "correction" movement for the time being. The $2145 price level will be tested.
If that level fails to be broken, gold is seen to be able to trade back to the $2,185 price level and the $2,250 price level will be reached if the $2,185 resistance fails to be maintained.
If the price level of $2,145 is successfully penetrated, the price of gold is expected to be able to trade low until the level of $2,116.
