The price of gold was traded high up to the $2,200 level at the March 2024 series FOMC meeting yesterday.
Following this, Fed Powell has assured market players that the implementation of interest rate cuts for the year 2024 will still be implemented at least three (3) times.
This gives a clear perception to market players that the increase in the inflation level that has been reported recently does not affect the Fed's stance on the expected goal of restoring the inflation value at the level of 2.0% this year.
In addition, the recent indications of the labor market which is seen to have strengthened do not give the Fed any worries about its implications for increasing the value of inflation in the country.
The rise in the price of gold that happened yesterday and also the indication that has been released by the Fed is a clear indication of the return of the increasing demand for gold.
On the other hand, geopolitical factors still indicate an increase in gold demand throughout 2024.
Among them, the Russia-Ukraine conflict which still dominates, the Israel-Palestine war and the Red Sea conflict. In addition, the massive election in the United States presidential election for 2024 is also a major factor in the increase in demand for gold prices around the world.
Technical Analysis
Based on the daily chart, the "bull-flag pattern" formation was seen clearly formed yesterday and has now been confirmed when the price level of $2,195 was successfully broken. The next upside in gold prices will be centered around the $2,250 price area.
If gold trades close below the $2,200 level today, the $2,195 price area will be tested. And if that level is successfully broken, the price area of $2,140-$2,130 will be the focus of gold buyers.
