Introduction to Gold Market Trends
The overall trend of gold is still strongly bullish, with support points at $3615, $3560, and $3500 per ounce, and resistance points at $3680, $3720, and $3760 per ounce.
Today’s Gold Trading Signals
To make informed trading decisions, consider the following signals:
- Sell gold from the resistance level of $3710 with a target of $3580 and a stop-loss of $3770.
- Buy gold from the support level of $3560 with a target of $3740 and a stop-loss of $3520.
Technical Analysis of Gold Price (XAU/USD)
The gold price index moved toward the resistance level of $3708 per ounce after the U.S. interest rate cut. Lower borrowing costs increased the attractiveness of trading gold. The U.S. Federal Reserve lowered the benchmark interest rate by a quarter of a percentage point to a range of 4% to 4.25%. This decision was made in response to slowing job growth and rising inflation, which underscores the continued risks to both sides of the Fed’s dual mandate.
Impact of Interest Rate Decisions on the Dollar
The U.S. dollar index initially fell to its lowest level since 2022 before recovering to trade at 97.00. This fluctuation occurred as traders digested the latest U.S. Federal Reserve decision. The Federal Reserve cut interest rates by 25 basis points and signaled an additional 50 basis point cut before the end of the year. Fed Chair Powell indicated that the risks of rising and persistent inflation have receded, describing the move as a "risk management" cut.
Trading Tips
Be careful monitoring market movements and wait for a stronger decline in gold prices before considering buying again. The gold market is experiencing renewed buying momentum, with prices approaching $3,700 per ounce, driven by the Federal Reserve’s interest rate cuts and hints at further cuts.
Will the Price of Gold Rise in the Coming Days?
The gold market is likely to continue its upward trajectory due to several factors, including global trade and geopolitical tensions, central bank gold bullion purchases, and a weaker U.S. dollar. The Federal Reserve’s updated federal funds rate forecast indicates the possibility of one additional cut this year and two in the next, which could further support gold prices.
Conclusion
In conclusion, the gold market remains strongly bullish, with potential for continued gains in the coming days. The Federal Reserve’s interest rate decisions, global trade tensions, and central bank gold purchases are key factors supporting the gold price. As the market navigates these developments, traders should be cautious and wait for stronger declines in gold prices before making their next move. With the right strategy and understanding of market trends, traders can make informed decisions and potentially benefit from the gold market’s continued growth.
