Central Banks and Fed Policy Support Gold’s Winins
In addition to the technical force, fundamental factors continue to support the Gold meeting. Central banks, in particular China, have already collected the gold reserves for four consecutive months and point to a strategic shift of the US dollar. “Central banks remain golden acquisitions at record level, try to diversify from an ever -volatile US dollar,” said Goldcore CEO David Russell.
In the meantime, the expectations of facilitating the Federal Reserve policy have contributed to Gold’s profession. Although the FED is expected to keep the rates unchanged during the upcoming meeting, traders are later this year in the price reduction in the rate reduction. A Dovish attitude would further weaken the dollar and support the upward momentum of Gold.
Treasury output rises on inflation problems
Despite the power of Gold, the proceeds of the American treasury climbed on Friday when investors consumed new inflation data. The benchmark 10-year yield increased by 3 basic points to 4.306%, while the return of 2 years with 6 basic points rose to 4.013%. A report from the University of Michigan showed that consumer sentiment fell sharply in March, with the inflation expectations that rise to 4.9% of 4.3%.
Andrew Brenner of Natalliance called the data ‘stagflationary’, which suggests that persistent inflation could make the rate decision of the FED difficult. If inflation remains increased, gold can continue to benefit from the cover of demand.
Predict gold prices: Bullish Momentum Intact, but pay attention to pullbacks
Gold’s breakout above $ 3,000 is an important technical and psychological milestone. Although the trend bullish remains, traders have to look out for potential profitable. If gold above 50-day SMA applies to $ 2,830, the rally can extend to new highlights. However, any resolution in trade tensions or a repair of shares can delay the momentum.
For the time being, the question of the safe haven, buying the central bank and FED policy expectations will continue to support Gold’s Bullish prospects. Traders will follow the FED meeting closely next week in the further direction.