Gold price likely to trade between $1,285-1,360 an ounce in March

London (Mar 6)  INTL FCStone looks for a stronger U.S. dollar and higher bond yields to weigh on gold during March. Barring a trade war, analysts doubt traders will want to establish bearish positions in the greenback ahead of a Federal Open Market Committee meeting around the middle of the month.

 Further, U.S. bond yields remain high, while other central banks appear reluctant to tighten monetary policy, INTL FCStone said in a monthly commodities outlook.

“A stronger dollar should weigh on gold, as should higher U.S. bond yields heading into the March Federal Reserve meeting,” said INTL FCStone.

 Also, gold does not appear to be benefitting from recent downdrafts in equities, leaving it “more vulnerable to the upward movements we see in both the dollar and interest rates,” INTL FCStone added.

 The firm said it sees gold trading between $1,285 and $1,360 during the month “as we suspect that the higher rate/higher dollar scenario will return, especially if the tariff talk is toned down.”

Silver “should follow gold’s trajectory,” INTL FCStone added. Analysts see this metal ranging between $15.85 and $16.90 an ounce.

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