Gold Prices Retreat But Remain Up in March; Fed Policy Looms Large

• Gold prices retreated this week but remain up over 5% in March. The Fed's policy announcement next week will be key for gold's outlook.

• Upside inflation risks are materializing, which could lead the Fed to adopt a more hawkish posture, reducing expected rate cuts. This could be bearish for gold.

• If the Fed signals fewer cuts than expected, bond yields and the dollar may rise, weighing on gold prices.

• Gold managed to hold support at $2,150 this week. Failure to protect this level could trigger a pullback towards $2,085 or $2,065.

• If buyers spark a bullish reversal soon, gold could retest recent record highs at $2,195 and trendline resistance near $2,205.