Gold Sets New Record: Buy or Sell Amid the Market Frenzy?Hello traders,
Last week, gold ended with an unexpected twist. Prices continued to climb on Friday (19/09), marking the 5th straight week of gains, reaching $3,683.24/oz, while futures advanced to $3,718.50/oz. This came right after the Fed cut interest rates—a move that was expected to “cool” gold. So, is this rally sustainable or just a trap?
Fundamental Analysis: Rate Cuts Fuel Gold’s Rise
After the Fed cut rates by 0.25%, the market saw chaotic trading, with gold hitting historic highs before a quick pullback. Still, the Fed’s message reinforced investor confidence in gold:
Lower holding costs: Reduced interest rates lower the opportunity cost of holding non-yielding gold.
Dovish Fed stance: Despite warning about persistent inflation, Minneapolis Fed President Neel Kashkari suggested job risks could lead to further cuts, raising expectations for looser policy.
Strong demand: Physical gold demand remains high. In India, prices hit a 10-month peak, while in China, discounts widened to a 5-year high, signaling robust demand despite rising prices.
Technical Analysis: Structure Break, Uptrend Resumes
By the weekend, gold broke through its downtrend line, confirming a structural shift and highlighting strong buying pressure. This suggests the bullish trend may continue.
Outlook: This week, focus remains on buying opportunities with short-term targets at $372x and $373x. However, caution is needed with upcoming macroeconomic events, which could trigger large liquidity zones and potential traps.
Sample Trading Strategies (strict risk management):
BUY SCALP: $3671–$3669 | SL: $3666 | TP: $3674–$3694
BUY ZONE: $3657–$3659 | SL: $3647 | TP: $3669–$3709
SELL SCALP: $3713–$3715 | SL: $3719 | TP: $3705–$3785
SELL ZONE: $3731–$3733 | SL: $3741 | TP: $3723–$3683
The market is heating up. Can gold smash through barriers to set fresh records? Share your thoughts below! 👇
