Analysis of gold news: The price of gold once fell to $2,149 per ounce during the European trading session on Wednesday, then recovered its losses and soared, currently trading around $2,203 per ounce. The drop in gold prices was due to renewed buying interest in the U.S. dollar. USD/JPY rebounded strongly on Tuesday following an expected Bank of Japan interest rate hike, pushing the greenback higher while weighing on gold prices. However, the Federal Reserve’s monetary policy announcement on Wednesday is in line with market expectations. The Federal Open Market Committee unanimously voted to remain on hold. The policy interest rate will continue to be maintained in the range of 5.25%-5.50%, and the pace of balance sheet reduction has not changed. Gold prices rebounded. Judging from the changes in the interest rate resolution itself, the only difference between the text of the March resolution and the January resolution is that the beginning of “Job growth has slowed down since the beginning of last year, but is still strong” to “Job growth remains strong.” Strong” and that’s it. Therefore, statements such as “The Federal Reserve is committed to achieving maximum employment and a 2% inflation rate in the long term” and “It is not appropriate to cut interest rates before the committee gains more confidence.” These are statements that investors have read many times. Fortunately, the March policy meeting will also release the members’ economic expectations simultaneously, leaving some highlights for such an early morning.
Today’s gold strategy: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. Focus on the 2219 first-line resistance at the top and the 2190 first-line support at the bottom.
Analysis of crude oil news: On Wednesday (March 20), the price of WTI crude oil fluctuated and fell in the white market. As the strength of the US dollar suppressed oil prices, it stabilized and rebounded in late trading. If tonight’s FOMC interest rate decision proves that the pace of interest rate cuts has slowed, it may reduce oil demand expectations, which will affect commodity price trends and overall market sentiment. API data released overnight was fairly neutral. U.S. crude oil inventories are estimated to have fallen by 1.52 million barrels over the past week, close to market expectations of a decline of about 1 million barrels. Additionally, the American Petroleum Institute reported that Cushing crude inventories increased by 325 million barrels. On the refined product side, gasoline inventories fell by 1.57 million barrels last week, while distillate inventories increased by 0.5 million barrels.
Today’s strategy for crude oil: It is recommended to focus on rebounding from high altitudes, supplemented by low and long corrections. Focus on the 83.1 first-line resistance at the top and the 80.1 first-line support at the bottom.
Caution is required in operation and suggestions are provided for reference.
