Gold seems to have charted a bullish continuation pennant pattern on the 4-hour chart. An upside break would allow a rally above the February high of $1,344. The zero-yielding metal has shined bright over the last few days as markets pulled forward Fed rate cuts bets. Currently, rates markets are pricing prospects of three 2019 rate cuts.
Some investment banks have already rolled out forecasts for two rate cuts. Meanwhile, Goldman Sachs believes markets are overpricing rate cuts.
I think Fed would not disappoint markets if equities come under pressure. however, if equities remain resilient, forget anything more than single rate cut.
From gold's view point, a better than expected US non farm payrolls data would pave for a pullback. However, if the data disappoints expectations, expect a move in gold above $1,350.
Some investment banks have already rolled out forecasts for two rate cuts. Meanwhile, Goldman Sachs believes markets are overpricing rate cuts.
I think Fed would not disappoint markets if equities come under pressure. however, if equities remain resilient, forget anything more than single rate cut.
From gold's view point, a better than expected US non farm payrolls data would pave for a pullback. However, if the data disappoints expectations, expect a move in gold above $1,350.