Spot gold is undergoing a healthy correction after the recent peak. The Minor Support Pivot is at $ 2,968.92, the center between $ 2,880.25 and $ 3,057.59. A drop through this pivot can open the door to the $ 2,880.25 support zone. A break below this level could uncover the 50-day advancing average at $ 2,867.86-considered a large technical level that the market has supported since the beginning of January. Given the prevailing bullish sentiment, dips in this region will probably attract a new purchase interest rate.
Assess the expectations and the demand for safe haven offer underlying support
The expectations of investors of tariff reductions by the Federal Reserve continue to support the long -term bullish story. The Fed kept the rates stable this week, with projections that indicate two cutbacks at 25 basic points towards the end of the year. Moreover, the concern about the upcoming Deadline of 2 April will keep safe port flows in gold in gold in gold in gold for new US tariff measures and constant global economic uncertainty.
Although the physical demand from India and China remains weak, the influx of Exchange Trade Product (ETP) compensate for that shortage and offers a steady source of institutional buying.
Gold prices forecast: Bullish Trend Intact Despite the withdrawal in the short term
Gold’s upward trend remains structurally healthy. The retreat of $ 3,057.59 reflects the normal profit maker instead of a fundamental shift in sentiment. As long as the market applies to the $ 2,867 – $ 2,880 support zone, Bulls will probably remain control. The long -term prospects continue to prefer higher gold prices, especially with the demand for safe and monetary policy expectations that are increased Dovish.
More information in our economic calendar.