Gold is entering a highly promising bullish phase as the market shifts strongly to the buy-side following the Fed’s decision to cut interest rates. The emerging risk-on sentiment aligns perfectly with a technical setup that is paving the way for a potential breakout — creating an exceptionally attractive environment for traders in the coming days.
1. Fundamental Drivers Supporting Gold’s Uptrend
• The Fed cut rates by 25 bps, something the market had been waiting for weeks. This immediately pushed the USD down to its lowest level in eight weeks.
• With a weaker USD, gold becomes cheaper for global buyers → strong inflows into XAUUSD.
• President Donald Trump continues to support low interest rates, a long-term policy signal that reinforces expectations that gold still has room to rise.
• Markets are now watching the December 16 NFP report, but given the current backdrop, this data will likely bring short-term volatility rather than change the broader bullish trend.
=> The macro landscape is clearing the path for gold to continue rising in the mid-term.
2. Technicals: Gold Holds Its Uptrend and Is Approaching Strong Resistance
Looking at the chart:
• XAUUSD is maintaining its position above the ascending trendline established since mid-November.
• Each time price touched the trendline, it bounced sharply — showing that buyers remain active.
• The nearby support at 4,270 is acting as a strong dynamic floor.
• Price is now approaching a major resistance zone at 4,360 – 4,370. With the current momentum, the likelihood of a slight pullback followed by a breakout is very high.
• If the breakout succeeds, the next target sits around 4,400 – 4,420.
=> A clean uptrend structure, nearby support, and strong momentum — buyers are fully in control.
3. Suggested Trading Setup
Prioritize buying with the trend.
Wait for a potential retest at 4,270 – 4,290 for an optimal entry.
A break above 4,370 will serve as a confirmation signal to scale in further.
1. Fundamental Drivers Supporting Gold’s Uptrend
• The Fed cut rates by 25 bps, something the market had been waiting for weeks. This immediately pushed the USD down to its lowest level in eight weeks.
• With a weaker USD, gold becomes cheaper for global buyers → strong inflows into XAUUSD.
• President Donald Trump continues to support low interest rates, a long-term policy signal that reinforces expectations that gold still has room to rise.
• Markets are now watching the December 16 NFP report, but given the current backdrop, this data will likely bring short-term volatility rather than change the broader bullish trend.
=> The macro landscape is clearing the path for gold to continue rising in the mid-term.
2. Technicals: Gold Holds Its Uptrend and Is Approaching Strong Resistance
Looking at the chart:
• XAUUSD is maintaining its position above the ascending trendline established since mid-November.
• Each time price touched the trendline, it bounced sharply — showing that buyers remain active.
• The nearby support at 4,270 is acting as a strong dynamic floor.
• Price is now approaching a major resistance zone at 4,360 – 4,370. With the current momentum, the likelihood of a slight pullback followed by a breakout is very high.
• If the breakout succeeds, the next target sits around 4,400 – 4,420.
=> A clean uptrend structure, nearby support, and strong momentum — buyers are fully in control.
3. Suggested Trading Setup
Prioritize buying with the trend.
Wait for a potential retest at 4,270 – 4,290 for an optimal entry.
A break above 4,370 will serve as a confirmation signal to scale in further.
Trade active
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LEVEL UP YOUR TRADING
👉t.me/+aoROTvcQl3k4MzA1
Signals & setups to boost your edge
Free trading plans to follow
Real-time market insights
👉t.me/+aoROTvcQl3k4MzA1
Signals & setups to boost your edge
Free trading plans to follow
Real-time market insights
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.