Technical & Fundamental Analysis By PapaFinanceTalk 11/03/2024

10 במרץ

Technical & Fundamental Analysis By PapaFinanceTalk 11/03/2024
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Technical Analysis

Bullish Trend:
Observing the current gold price on the daily timeframe, we can identify a strong uptrend characterized by higher highs and higher lows. Gold recently reached an all-time high and surpassed a significant resistance level at the previous high near 2150.
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Target Estimation:
The remaining distance to the upper boundary of the parallel channel on the daily timeframe is approximately 65 dollars. Additionally, the 78.6% Fibonacci extension level coincides with the upper trendline of the daily timeframe at around 2245. This confluence of technical factors suggests a potential target for the gold price.
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Profit-Taking and Retracement:
After reaching the target at 2245, profit-taking may occur, leading to a retracement towards the 61.8% Fibonacci level or the previous resistance zone around 2084. This retracement could provide an opportunity for another bullish leg towards a new high.
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Fundamental Analysis

Potential Fed Rate Cuts:
Federal Reserve Chairman Jerome Powell's recent statements before Congress indicated a possibility of interest rate cuts. Although the exact timing remains uncertain, Powell's comments suggest that the Fed will monitor economic data before making a decision.
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Market Expectations:
Most analysts and investors anticipate that the Fed could cut rates up to four times this year, possibly starting in June. This anticipation serves as a major factor driving gold prices higher, as it tends to weaken the US dollar and government bonds.
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Long-Term Perspective:
The aforementioned analysis presents a long-term trading perspective. It is crucial for traders to monitor news and developments closely, alongside implementing proper planning and risk management strategies in every trade.
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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 10, 2024