- Gold has entered a range-trading phase as it factors in the potential impacts of the Federal Reserve meeting, possible interest rate cuts, and a correction in equity markets following news about Chinese AI model DeepSeek, according to Norman.
- On Monday, a sell-off in technology stocks triggered by DeepSeek news led investors to liquidate bullion to offset losses.
- With the Fed's first policy meeting of the year concluding today, investors are closely watching for signals about the direction of interest rates and insights from Chair Jerome Powell's speech.
- Trump has urged for lower interest rates, which conflicts with the Federal Reserve’s independent authority to set interest rate policies.
- Meanwhile, Trump remains committed to imposing tariffs on Canada and Mexico, following through on his earlier promises.
- These policies are considered inflationary, which may compel the Federal Reserve to maintain higher interest rates to counter rising price pressures.
💡Summary -Price is currently consolidating near $2757 with resistance at $2771-$2772. -A break above $2772 could lead to further upside momentum. -A break below the 200 EMA at $2756 might lead to a test of $2744.59, signaling bearish continuation.