Technical & Fundamental Analysis (Short Term) By PapaFinanceTalk

11 Mar

Technical & Fundamental Analysis (Short Term)
By PapaFinanceTalk 11/03/2024

Technical Analysis:
- The current gold price in the short timeframe remains in a clear uptrend.

- Gold is still above the 200-day moving average, supported by the Fed Chair's signal of interest rate cuts last week.

- Reversal signals are still weak.
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Price Forecast:
- Gold is expected to move sideways until the CPI (inflation) data release on Tuesday.

- If the price breaks below the uptrend channel at around 2169, it may retrace to the 61.8% Fibonacci level at around 2151.

- The price could then resume its upward movement within the larger timeframe trend channel.

- The key factor to watch this week is whether the inflation data will exceed expectations and put pressure on gold prices.
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Economic Analysis:
- Another important economic indicator to watch is the US jobless claims data.

- While the US dollar weakened last week, we believe it is important to be cautious about a potential rebound in the dollar this week if US economic data comes out better than expected.
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Overall Outlook:

The continued slowdown in inflation could lead the Fed to cut rates this year. However, if inflation comes out higher than expected, the Fed may cut rates less than anticipated.
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Disclaimer:
This analysis is for informational purposes only and should not be considered as investment advice. Always conduct your own research and consult with a financial professional before making any investment decisions.
By PapaFinanceTalk
March 11, 2024
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Additional Notes:
- Traders should monitor price action closely and look for potential trend reversals.
- Economic data releases can have a significant impact on gold prices, so traders should be prepared for market volatility.
- It is important to use a combination of technical and fundamental analysis to make informed trading decisions.