American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

GLD ETF forecast ahead of FOMC decision: what next for gold price?

by admin March 19, 2025
March 19, 2025
GLD ETF forecast ahead of FOMC decision: what next for gold price?

In recent months, the heightened demand for safe haven assets has been a key bullish driver for gold and its derivatives. Investors are increasingly rushing to hedge their wealth against risks in the form of geopolitical risks, economic uncertainties, and jitters over Trump’s tariffs. 

Besides, the US dollar remains on a downtrend ahead of the Fed meeting. Investors will be keen on the central bank’s tone regarding the rate outlook. This includes Powell’s assertions on key indicators like employment, inflation, and the overall economic health.

On Tuesday, SPDR Gold Shares ETF (GLD) hit a fresh all-time high at $276.73; overtaking last week’s record high of $275. So far, it has been up by 13% year-to-date, adding to the 27% gains recorded in 2024. 

Read more: What is ANZ’s gold price forecast for the next 3-6 months?

Inflation data points to more leeway for Fed’s rate cuts

The rallying of gold price to a fresh all-time high comes just a few days after data from the US Department of Labor showed that the US inflation eased more than expected in February. Notably, this is the first time in four months that inflation has cooled. 

The released data showed that the US CPI rose by 0.2% in February compared to the previous month’s 0.5%. At an annualized rate, the index was up by 2.8% after increasing by 3.0% at the start of the year. Analysts had predicted that the CPI would surge by 0.3% for the month and 2.9% year-on-year. 

However, the improvement is likely temporary. As President Trump continues with his aggressive tariffs on various US imports, the cost of most consumer goods is expected to increase in the coming months.  

Subsequently, investors are increasingly betting on the Federal Reserve to lower interest rates in the coming months. More specifically, most expect the central bank to lower rates a little over two times before the year ends. GLD gold ETF tends to thrive in an environment of lower interest rates as the opportunity cost of holding the non-yielding bullion is lower. 

Read more: Here’s why the GLD ETF is surging and what to expect

Trump’s trade policy tests the dollar in favor of gold prices

While the US dollar is also considered a conventional safe haven, concerns over a probable recession in the leading economy have been weighing on the greenback. On Tuesday, the dollar index, which tracks the value of the greenback against a basket of six major currencies, retested the 5-month low hit a week ago at $103.25.  A lower US dollar makes gold less expensive for buyers with foreign currencies. 

Notably, fears of a US recession have detented the consumer sentiment as the two-day Fed meeting commences on Tuesday. In the subsequent FOMC statement, investors do not expect change in the current interest rates. The central bank has to be cautious of cutting rates amid the heightened inflation expectations.  

Even so, the market will be keen on the bank’s tone and its view on the impact of Trump’s trade policy on the economy. According to most investors, softening their hawkish tone is now just a matter of timing.  

GLD ETF technical analysis

GLD chart by TradingView

The weekly chart shows that the GLD ETF stock has been in a strong bullish trend for a long time and now sits at a record high. Its surge is in line with our previous GLD forecast, in which we cited the forming bullish pennant pattern. 

GLD remains above the 50-week and 100-week Exponential Moving Averages (EMA), a bullish sign. Also, the MACD, Relative Strength Index (RSI), and the Stochastic Oscillator have continued rising. Therefore, the fund will likely keep soaing as bulls target the key point at $300.

The post GLD ETF forecast ahead of FOMC decision: what next for gold price? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Warby Parker stock price crashes to key support: buy the dip?
next post
This US bank stock could gain from Trump’s tariffs

Related Posts

SCHD ETF stock faces headwinds and tailwinds: is...

March 10, 2025

Inflation vs. wages: How rising prices stack up...

June 28, 2024

Congress approved a TikTok ban. Why it could...

April 27, 2024

‘We’ll buy Twitter for $9.74B’: OpenAI CEO shuts...

February 11, 2025

Asian markets fall as Korea’s political crisis deepens

December 9, 2024

As LVMH extends Arnault’s reign, succession concerns still...

April 18, 2025

Top 3 Nasdaq 100 stocks rising as it...

April 4, 2025

S&P 500, Dow edge higher but face weekly...

January 4, 2025

Lloyds share price patterns point to a 47%...

February 13, 2025

Asian markets mixed as US inflation data and...

January 14, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,209)
    • Investing (2,537)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved