Gold Price Outlook Mired by Failure to Test March High
2021-03-15 14:30:00
David Song,
Strategist
Gold Price Talking Points
The price of gold snaps the series of higher highs and lows from the March low ($1677) as the US 10-Year Treasury yield climbs to a fresh yearly high (1.64%), and it remains to be seen if the Federal Reserve’s March meeting will influence the near-term outlook for bullion as the central bank is slated update the Summary of Economic Projections (SEP).
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Gold Price Outlook Mired by Failure to Test March High
The recent rebound in the price of gold appears to be losing steam as the precious metal struggles to test the March high ($1760), and bullion may consolidate ahead of the Federal Open Market Committee (FOMC) interest rate decision on March 17 as the central bank is expected to retain the current course for monetary policy.
US Dollar Outlook Hinges on Federal Reserve Forward Guidance 2021-03-13 12:00:00 David Song, Strategist
US Dollar Talking Points
The US Dollar Index (DXY) bounces back from a three-day losing streak ahead of the Federal Reserve interest rate decision on March 17, and fresh forecasts coming out of the central bank are likely to influence theGreenback as Fed officials are slated to update the Summary of Economic Projections (SEP).
Fundamental Forecast for US Dollar: Neutral
The US Dollar Index (DXY) attempts to retrace the decline from the monthly high (92.50) amid the recent rebound in longer-dated US Treasury yields, and it remains to be seen if the Federal Open Market Committee (FOMC) will adjust the forward guidance for monetary policy as Congress passes the $1.9 trillion coronavirus recovery package.
EUR/USD Exchange Rate Falls Further on US Economic Recovery Hopes
Since touching impressive highs at the end of February, the Euro to US Dollar (EUR/USD) exchange rate has been plummeting and shedding its ground. Investors are buying the US Dollar (USD) in a rebound rally due to hopes that the US economy will recover.
At the end of February, EUR/USD touched on a high of 1.2239, but has since plunged back down. Last week saw EUR/USD open at the level of 1.2072 and shed around a cent and a half, closing at the level of 1.1912.
EUR/USD has continued its tumble this week so far. At the time of writing, EUR/USD is trending near a low of 1.1861, the lowest level for the pair in 3 months since November 2020.