XAUUSD – Medium-Term Outlook Following Fed Rate CutXAUUSD – Medium-Term Outlook Following Fed Rate Cut
Good day traders,
The key event for September has now taken place: the Federal Reserve reduced interest rates by 25 basis points, its first cut this year. Market expectations also suggest a further 50 basis point reduction may be on the table at the next meeting. In his remarks, Chairman Powell emphasised a dual risk – inflationary pressures could re-emerge while signs of labour market weakness continue to build.
Technical Perspective
Gold printed an H1 candle closing beneath the ascending channel, which signals a potential breach of the medium-term uptrend.
The bullish side failed to sustain momentum following the rate cut, reflecting a cautious approach to initiating long positions at elevated levels.
Medium-term investors may prefer to await a deeper pullback before considering new long exposure.
That said, the downside is not yet fully confirmed, as price continues to oscillate near the upward trendline → immediate short positions carry a degree of risk.
Trading Scenarios
Sell Strategy
Scalping: 3676 – 3678 | SL: 3683 | TP: 3666 – 3650 – 3635 – 3628
(Stop-loss may be adjusted to breakeven should price respond favourably, allowing trades to run longer).
Sell Zone: 3697 – 3700 | SL: 3705 | TP: 3680 – 3666 – 3650 – 3635 – 3628
Buy Strategy
Scalping: 3634 – 3636 | SL: 3629 | TP: 3645 – 3660 – 3672
Buy Zone: 3600 – 3598 | SL: 3590 | TP: 3633 – 3645 – 3660 – 3675 (extended)
Conclusion
Gold remains in a delicate phase in the aftermath of the Fed’s rate cut. Close monitoring of price behaviour around key support and resistance levels is essential before a clearer directional bias can be established.
Stay aligned with this outlook — I will provide timely updates should the market structure shift. Follow to receive the latest scenarios as price action unfolds.
