ETO Markets Global Pulse: Gold Consolidates Near 5000 Ahead of Fed Decision

Market Review

According to ETO Markets monitoring, on March 17 (Tuesday) gold prices remained broadly stable. Spot gold closed near USD 5,005.45/oz, while April U.S. gold futures edged up 0.1% to USD 5,008.20/oz.

During Asian trading on March 18 (Wednesday), spot gold fluctuated within a narrow range and was trading near USD 5,000.72/oz.

Global Headlines

Trump Signals Possible NATO Exit, Iran Escalates Attacks

Trump stated that the United States may consider withdrawing from NATO and indicated that the conflict with Iran is not yet ready to end, though an eventual exit remains possible. Iran reported that its military operations have entered an “accelerated phase,” continuing strikes on U.S. bases across the Middle East, signaling further escalation.

Israel Threatens Strikes on Irans New Leadership

The Israeli military indicated it will continue targeting Irans leadership. Iran confirmed that contingency plans are in place for key positions and reported that Ali Larijani and related personnel were killed in recent airstrikes, suggesting the conflict is moving up the escalation ladder.

Fed Decision Approaches, Rate-Cut Expectations Repriced

Markets expect the Federal Reserve to hold rates steady, while rate-cut expectations have been sharply revised down from around 55 basis points to approximately 26 basis points. Policy stance is seen turning more cautious, with increased uncertainty around the rate path.

U.S. Orders Global Embassy Security Reviews

The U.S. State Department has instructed all embassies worldwide to conduct immediate security assessments in response to escalating Middle East risks, indicating heightened global security vigilance.

Signs of Easing in Transatlantic Trade Tensions

The European Union has resumed the approval process for a trade agreement with the United States. The European Parliament is set to vote, followed by member state approval if passed, pointing to potential improvement in transatlantic trade relations.

ETO Markets Analyst View (Spot Gold)

From a technical perspective, USD 5,025 serves as the key near-term pivot. If prices remain below this level, gold stays biased to the downside, with targets at USD 4,985 and USD 4,965. A sustained move above USD 5,025 could open room for a rebound toward USD 5,045 and USD 5,065.

Short-term indicators show limited momentum, with prices consolidating in a range. Gold continues to be driven by competing forces from rate expectations, geopolitical risks, and U.S. dollar movements. With no clear directional consensus, investors should carefully assess trading rhythm and risk exposure.

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