Gold Breaks To All Time Highs Amidst Rate Cut Optimism – Latest Updates

Hello Traders,

This week has been an interesting and eventful one with Gold being the main highlight, breaking to new all time highs above the latest peak from 20.08.2024 breaking 2532 area towards 2566.

XAUUSD 4HR – RSI Channel Breakout Followed By Price

XAUUSD Break to new all time high reaching 2566

 

The move has been mainly fueled by rate cut optimism for next Wednesday’s FOMC meeting with the US Federal Reserve looking to cut interest rates by a minimum of 25 basis points. In addition, we have seen yesterday the ECB cutting rates by 60 basis points which was another reason for gold to break higher as it reacts with optimism whenever we have dovish monetary policies in play as rate cuts represent.

US CPI this week showed lower but Core CPI higher and yesterday’s jobless claims higher, thus allowing XAUUSD to find that support for the move,

Technically, Gold has respected the support trendlines and managed to find support for the latest move. The question now remains whether the market has been reacting ahead and pricing in these rate cuts or whether it has still the power to grind higher and any small dips to find support.

In the short term, traders need to be aware of the above as it will be a key week next week to see whether the markets have already reacted in anticipation of the rate cuts and in that scenario we might see volatility, contradicting this week’s moves. Or whether the market has still support and room for more upside.

We will go through the next week’s outlook and technical analysis on Monday.

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