Gold Nears Record High Amid US Rate Cut Optimism
Technical Analysis: Gold
The price is approaching its all-time high of 2450 and is expected to consolidate between 2450 and 2428 until a breakout occurs.
Bullish Scenario:
If the price continues its bullish trend to reach the all-time high of 2450, closing a 1-hour or 4-hour candle above this level will support further increases towards 2466.
Bearish Scenario:
For a bearish trend, the price should stabilize below 2450, potentially falling to 2440 and 2428. A strong bullish volume is required to break through the 2450 level.
Key Levels:
- Pivot Line: 2440
- Resistance Levels: 2450, 2466, 2475
- Support Levels: 2428, 2420, 2398
Today's Expected Range:
The price is anticipated to fluctuate between the support at 2428 and the resistance at 2466, with a bearish tendency.
Previous idea:
Gold Rises with US Rate Cut Optimism, Approaching May Record High
Gold prices rose on Tuesday as comments from Federal Reserve Chair Jerome Powell bolstered the case for a September rate cut. Investors are keenly awaiting more U.S. economic data for further monetary policy cues.
Powell remarked on Monday that the three U.S. inflation readings over the second quarter of this year "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion. U.S. retail sales data due at 1230 GMT on Tuesday is expected to provide further direction.
Gold hit multiple new highs in April and May, then retreated in June when U.S. interest rate cut forecasts were postponed, and physical demand softened in response to the high prices. In July, increased optimism for a September rate cut has driven the non-yielding bullion higher again.
Combining this with the technical analysis:
The price is approaching its all-time high of 2450 and is expected to consolidate between 2450 and 2428 until a breakout occurs.
Bullish Scenario:
If the price continues its bullish trend to reach the all-time high of 2450, closing a 1-hour or 4-hour candle above this level will support further increases towards 2466.
Bearish Scenario:
For a bearish trend, the price should stabilize below 2450, potentially falling to 2440 and 2428. A strong bullish volume is required to break through the 2450 level.
Key Levels:
- Pivot Line: 2440
- Resistance Levels: 2450, 2466, 2475
- Support Levels: 2428, 2420, 2398
Today's Expected Range:
The price is anticipated to fluctuate between the support at 2428 and the resistance at 2466, with a bearish tendency.
Previous idea:
Gold Rises with US Rate Cut Optimism, Approaching May Record High
Gold prices rose on Tuesday as comments from Federal Reserve Chair Jerome Powell bolstered the case for a September rate cut. Investors are keenly awaiting more U.S. economic data for further monetary policy cues.
Powell remarked on Monday that the three U.S. inflation readings over the second quarter of this year "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion. U.S. retail sales data due at 1230 GMT on Tuesday is expected to provide further direction.
Gold hit multiple new highs in April and May, then retreated in June when U.S. interest rate cut forecasts were postponed, and physical demand softened in response to the high prices. In July, increased optimism for a September rate cut has driven the non-yielding bullion higher again.
Combining this with the technical analysis:
- Bullish Outlook: Powell’s comments and the anticipation of a rate cut in September are likely to support the continuation of the bullish trend. If gold can break above 2450 and stabilize, it is expected to move towards 2466 and potentially higher.
- Bearish Outlook: If the economic data does not favor a rate cut, or if there is a shift in market sentiment, gold might fail to break above 2450. In this case, prices could stabilize below this level and target support zones at 2440 and 2428.
Overall, while the market awaits further cues from U.S. economic data, the technical indicators combined with the current market sentiment suggest that gold is poised for significant movements, with a bullish bias given the rate cut optimism.
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