Gold Price Analysis │ Short Trades Recommended as Fed Signals Rate Cut
Gold’s price broke key support at 2707-2699, setting a bearish target at 2625-2608. Short trades recommended at resistance zones 2706-2700 and 2738-2729, with today’s low as the main target. Fed’s anticipated rate cut may further influence gold’s direction.
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1. XAUUSD Bearish Action as Gold Breaks Support
Yesterday, gold's recent short-term uptrend reversed sharply, with the price breaking below the key support level between 2707 and 2699. This shift in momentum has adjusted the bearish target to the next lower Target Zone, which lies between 2625 and 2608.
For traders considering short positions, it may be wise to enter on a corrective move upwards, particularly around the resistance levels of 2706 - 2700 or 2738 - 2729. Today's low represents the primary bearish target.
Meanwhile, the Federal Reserve’s latest meeting brings an added layer of complexity to the market. As the meeting wraps up on Thursday, market expectations strongly suggest the Federal Open Market Committee (FOMC) will lower the benchmark interest rate by 0.25%. This anticipated cut reflects the Fed's efforts to 'recalibrate' monetary policy, especially as inflation shows signs of cooling and the labor market exhibits signs of weakening. This move will likely shape the financial landscape, impacting gold’s trading trajectory in the coming days.
