Gold price (XAU/USD) remains stable near the $2,900 mark as traders analyze recent comments from United States (US) President Donald Trump. Over the weekend, President Trump discussed the US economy during a Fox News interview, describing the current state as a ‘transition’ phase. Market participants have already speculated that the US economy may be heading towards a recession.
Meanwhile, Federal Reserve (Fed) Chairman Jerome Powell provided remarks before the Fed’s blackout period began. The blackout period precedes the key policy rate decision on March 19. Powell indicated that there is no immediate need for policy changes, emphasizing that keeping interest rates steady is a cautious approach to avoid potential policy errors.
Market Developments and Economic Outlook
- President Trump reaffirmed his economic stance, focusing on tariffs and federal job cuts, Bloomberg reports.
- Fed Chair Jerome Powell acknowledged economic uncertainties but emphasized a patient approach to monetary policy.
- The Atlanta Fed’s GDP tracker suggested the US economy might contract this quarter, increasing market concerns.
- Lower borrowing costs typically support Gold prices, as highlighted by Reuters.
- The CME FedWatch Tool indicates a 97.0% probability of no rate changes in the March 19 meeting.
- The likelihood of a rate cut by the June 18 meeting has risen to 81.8% as of Monday.
Technical Analysis: Gold Prices at a Crossroads
Gold prices may experience a pullback as market sentiment stabilizes. The metal is currently near $2,905, facing key resistance at $2,912 daily Pivot Point and $2,927 daily R1 resistance. If buying pressure increases, Gold could test the daily R2 resistance at $2,945, with the all-time high of $2,956 acting as a major barrier.
On the downside, Gold price finds support at the $2,900 psychological level and $2,893 (S1 support). A break below this zone could trigger further declines toward $2,878 (S2 support), a level where buyers may re-enter the market before new tariff measures take effect next month.
Conclusion
As traders assess Trump’s economic policies and the Fed’s cautious stance, Gold prices remain steady. Market participants will closely monitor upcoming economic data and policy developments to determine the next direction for the precious metal. For more daily updates and in-depth analysis, visit Daily Gold Signal. For the latest market updates, check out Daily Gold Update.
