Don’t fight the market, act when the time is right!Driven by rising expectations of a Federal Reserve rate cut and a weakening US dollar, gold prices continued to climb this week, reaching a historic high of $3,700 on Tuesday. Market expectations are that the Fed will announce a 25 basis point rate cut in its upcoming meeting. If Chairman Powell further emphasizes concerns about the job market and confirms a path of three rate cuts this year in a subsequent press conference, gold prices are expected to gain renewed upward momentum.
From a technical perspective, the hourly chart shows solid support in the 3665-3660 range. If gold prices hold this level before the European session, it will provide a strong defensive foundation for bulls and can also be considered a useful reference area for short-term long positions. Once the price re-establishes itself at the 3700 level, it is expected to further challenge the 3710-3720 resistance level. A breakout with strong volume could open up further upside potential, continuing the bullish trend.
Prior to the Federal Reserve's interest rate decision, the market is likely to remain volatile at high levels, accumulating momentum for major news releases. We recommend primarily buying on dips. The current bull-bear watershed is 3650; if this level falls, be wary of the risk of a further correction.
