Everbright Futures: Fed interest rate decision imminent, what signals should gold traders focus on?

International gold prices fluctuated overnight, with London spot gold moving within a narrow range, COMEX gold futures up 0.18%, and SHFE gold down 0.16%. In the early hours of Thursday Beijing time, the Federal Reserve will hold its March policy meeting. The focus of this meeting will be on three main areas: first, whether monetary policy will shift; the latest dot plot will be released, and last December’s internal disagreements among officials were significant. The dot plot showed a median expectation of one rate cut (25 basis points) this year, and the key focus now is whether there will be any rate cuts this year. Second, a summary of the Q2 forecast (SEP), where Fed officials will make predictions on inflation and economic trends, especially considering the recent surge in oil prices in March and its actual impact on inflation levels. Third, post-meeting comments from the Fed chair. This is the first Fed meeting after the Middle East conflict, and with rising oil prices, weakening employment, and judicial investigations, the statements from Chair Powell at the press conference are worth noting, particularly how he assesses the “dual risks” of inflation and growth triggered by the surge in oil prices due to the Middle East conflict. Gold may experience increased volatility after the meeting, so caution is advised in trading. (Everbright Futures)