Precious metals are trading cautiously and sideways ahead of the FOMC

Both precious metals, gold and silver, are struggling to regain momentum ahead of the latest Federal Reserve policy decision. The repricing of Fed rate cut expectations has shaken some bulls out of their positions and prompted bears to push prices lower. However, losses remain limited due to ongoing geopolitical tensions.

Gold continues its gradual decline, falling to $4,950. Technically, the metal shows negative momentum on the daily chart but is extending a sideways consolidation near the $5,000 psychological level for the third consecutive day.* Meanwhile, silver (XAGUSD) lacks upward momentum compared to gold but remains near the $78 mark.*

All eyes on the Fed today

Despite the ongoing geopolitical tensions, it’s been a calm week so far, which isn’t surprising given the lack of events on the economic calendar. However, things will change from today; volatility is expected to increase following the outcome of the FED meeting.

The March FOMC meeting concludes today, and markets are looking forward to Jerome Powell's remarks. The US central bank is anticipated to maintain a cautious tone during the meeting, with no actual rate adjustments expected today. According to CME FedWatch data, there's a 99% chance the Fed will keep interest rates steady in the 3.5–3.75% range at its March 18 meeting. Traders will pay close attention to the Fed's dot plot, Fed Chairman Jerome Powell's remarks, and the FOMC's updated estimates for interest rates, inflation, and the economy.

Powell's speech seems more important

With inflation risks once again dominating the policy narrative, market participants and investors are closely monitoring Fed Chair Jerome Powell’s remarks and the dot plot update for insights into the Federal Reserve’s future policy direction. Powell is scheduled to hold a press conference 30 minutes after the decision is announced, where investors hope to gain clarity on how the Fed plans to address these challenges.

 

* Past performance is no guarantee of future results.