Instrument: GOLD+
Bullish Preference:
A Buy position is envisaged if the price trades above 2032.71 With take profit at 2036.38
Bearish Preference:
A Sell position is envisaged if the price trades below 2027.64 with Take profit at 2023.86
Fundamentals:
USD FOMC Meeting Minutes 8:00pm
Comment:
Copper and gold are expected to see the largest immediate price boost in the commodities sector from potential U.S. Federal Reserve interest rate cuts, analysts at Goldman Sachs said.
“The immediate price boost from a Fed driven 100 basis point decline in U.S. 2-year rates is the largest for metals, especially copper (6%), and then gold (3%), followed by oil (3%),” Goldman Sachs said in a note dated Feb. 20.
The market is awaiting clues on the outlook for US interest rates. The Federal Reserve is set to release minutes of its recent meeting midweek. We believe Fed policy will remain key to the outlook for gold prices in the months ahead. Higher borrowing costs are typically negative for gold.
Analysis: SCRUM Team