Gold Rises as Expectations for a Fed Rate Cut Grow

Fundamental Analysis

• Expectations for a Federal Reserve rate cut are increasing, giving gold strong support
• U.S. employment conditions are worsening, and several Fed officials have made dovish remarks
• The Trump administration is also openly calling for rate cuts, increasing political pressure on the Fed

Gold – Daily Chart

Gold rebounded from the Ichimoku Cloud and has broken the recent high, surpassing $4,245. When expectations for U.S. rate cuts rise, gold — which does not yield interest — tends to gain. A breakout may not be immediate, but a move toward a new all-time high is possible, with $4,400 as the next target.

Technical signals also support the uptrend: the conversion line is above the base line, price has bounced from the cloud, and the lagging span has crossed above the candlesticks.

Gold Day-Trading Strategy

On the 1-hour chart, resistance is strong above $4,260, leading to profit-taking and a temporary drop. However, fundamentals still favor an upward move, making a buy-the-dip strategy reasonable.

A rebound from the $4,200 support level looks attractive. As the cloud thickens, another upward bounce is likely. If price breaks below $4,190, a stop-loss is recommended, and traders should wait for a new entry opportunity.

Major Indicators Today

Economic Data & Events	Time
Eurozone Employment Data	19:00
Eurozone Consumer Price Index	19:00