After the Fed’s Rate Cut: Gold’s Price Action and What’s Next
Updated
Yesterday was another wildly volatile day for 
XAUUSD , with prices dropping approximately 600 pips following the Fed's rate cut.
After breaking below the 2645-2650 confluence support on Tuesday, the market entered a day of consolidation with a tight trading range.
However, the calm didn’t last long...
Yesterday's sharp decline took prices below the 2610-2615 technical support zone and even breached the critical 2600 level.
Overnight, Gold rebounded back above 2600, but in my opinion, this recovery is likely a normal retracement and does not signal a bottom for the yellow metal.
For bears, the sell zone begins at 2620 and extends slightly past 2630, accounting for the heightened volatility. This area presents an opportunity to look for short entries. The initial target for this move would be yesterday's low, but I wouldn’t be surprised to see Gold drop further toward the 2525 key support level in the near future.
As long as prices remain below the 2650-2660 resistance range, the outlook for XauUsd stays firmly bearish.
XAUUSD , with prices dropping approximately 600 pips following the Fed's rate cut.After breaking below the 2645-2650 confluence support on Tuesday, the market entered a day of consolidation with a tight trading range.
However, the calm didn’t last long...
Yesterday's sharp decline took prices below the 2610-2615 technical support zone and even breached the critical 2600 level.
Overnight, Gold rebounded back above 2600, but in my opinion, this recovery is likely a normal retracement and does not signal a bottom for the yellow metal.
For bears, the sell zone begins at 2620 and extends slightly past 2630, accounting for the heightened volatility. This area presents an opportunity to look for short entries. The initial target for this move would be yesterday's low, but I wouldn’t be surprised to see Gold drop further toward the 2525 key support level in the near future.
As long as prices remain below the 2650-2660 resistance range, the outlook for XauUsd stays firmly bearish.
Trade active
Gold dropped from sell zone
Target at 2585 insight
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