{"id":105102,"date":"2025-03-11T16:01:01","date_gmt":"2025-03-11T14:01:01","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=105102"},"modified":"2025-03-11T16:01:03","modified_gmt":"2025-03-11T14:01:03","slug":"gold-outlook-golds-price-remains-undecided","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/ar\/gold-outlook-golds-price-remains-undecided\/","title":{"rendered":"Gold Outlook: Gold\u2019s price remains undecided"},"content":{"rendered":"

Since our last report<\/a>, gold appears to be undecided as to which direction it should take and today we are to take a look at the main fundamental issues, tantalizing its price action currently and in the coming week. For a rounder view we intend to conclude the report with a technical analysis of gold\u2019s daily chart.\u00a0\u00a0<\/p>\n\n\n\n

Gold\u2019s negative correlation with the dollar is inactive<\/strong><\/h2>\n\n\n\n

Over the past five days, the negative correlation of the USD with gold\u2019s price appears to have been inactive. It\u2019s characteristic how the USD Index has declined on Wednesday, Thursday and Friday, while gold\u2019s price remained relatively unchanged or moved lower. <\/p>\n\n\n\n

Observing the movement of the two mentioned trading instruments shows that the negative correlation is currently inactive. This trend could persist for the rest of the week. Moreover, we issue a warning for a possible decoupling<\/strong> of the two trading instruments. <\/p>\n\n\n\n

Furthermore, U.S. bond yields continued to fall last week. Investor pessimism about the U.S. economic outlook seems to be growing.<\/p>\n\n\n\n

Our concerns about the U.S. economy persisted after President Trump\u2019s comments to FOX News. When asked about a possible recession, he responded, \u201cthere is a period of transition,\u201d which may be concerning.<\/p>\n\n\n\n

However, White House officials pushed back on recession concerns. Kevin Hassett, head of the National Economic Council, told Reuters there were many reasons for optimism about the U.S. economy despite some GDP contraction predictions.<\/p>\n\n\n\n

Nonetheless, recession concerns in the U.S. could drive safe-haven inflows into gold, supporting its price.<\/p>\n\n\n\n

US Financial releases ahead<\/strong><\/strong><\/h2>\n\n\n\n

Economists expect the inflation report to show easing pressures in the U.S. Core CPI is forecast at 3.2% year-on-year, down from 3.3%, while headline CPI may fall to 2.9% from 3.0%.<\/p>\n\n\n\n

This scenario could pressure the Fed to cut rates sooner. This weakening the dollar and supporting gold prices due to their inverse relationship.<\/p>\n\n\n\n

On the flip side, should the CPI rates showcase stubborn<\/strong> or even an acceleration of inflationary pressures in the US economy, it may have the opposite effect. However, we would like to note that the inverse relationship between the dollar and gold\u2019s price, appears to be inactive. <\/p>\n\n\n\n

Thus, we may focus on the inflation aspect, where easing inflationary pressures could lead to outflows from gold.<\/p>\n\n\n\n

It is considered to be a hedge against inflation\u00a0 whereas an acceleration of inflationary pressures could aid the precious metal\u2019s price.<\/p>\n\n\n\n

Gold Technical Analysis<\/strong><\/h2>\n\n\n\n

XAUUSD 4H Chart<\/strong><\/strong><\/h3>\n\n\n\n
\"We<\/figure>\n\n\n\n