Global gold markets are currently caught between bullish and bearish pressures, standing at a critical turning point as investors await the upcoming Federal Reserve decision on March 18, which is expected to play a decisive role in shaping the metal’s near-term direction.
In this context, Dr. Hany Fayez Youssef Hamad, Professor Practitioner in Gold & Entrepreneurship and a global expert in gold market analysis, stated that the upcoming Federal Reserve decision will be the key driver for gold prices in the short term.
“Gold is currently trapped in a highly sensitive balance, awaiting clear signals from US monetary policy, which will directly impact global liquidity and the strength of the U.S. dollar,” Hamad explained.
He noted that any shift toward monetary easing or signals of future rate cuts could support gold and trigger a strong upward movement. Conversely, maintaining tight monetary policy or keeping interest rates elevated may continue to exert downward pressure on prices.
Hamad further emphasized that the inverse relationship between gold and the US dollar remains a dominant force, with rising Treasury yields and a strong dollar acting as primary constraints on gold’s performance.
He also highlighted that markets are experiencing heightened anticipation, with economic data and geopolitical developments amplifying volatility ahead of the decision.
“Markets could witness sharp and potentially unconventional movements immediately following the Fed announcement,” he added.
Dr. Hamad concluded by stressing that investors should approach this phase with caution, closely monitoring Federal Reserve signals, as they remain the primary determinant of gold’s next directional move.
