Gold Price Analysis: Understanding XAUUSD Movements Driven by Fed Rate Cut Speculations

Monday, 16 September 2024, 12:29

Gold prices (XAUUSD) are rising as expectations for a Fed rate cut increase to 59%. Fundamental analysis shows decreasing US Treasury yields are supporting this trend. Traders are also closely watching upcoming US Retail Sales and housing data ahead of the Federal Reserve's decisions.
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Gold Price Analysis: Understanding XAUUSD Movements Driven by Fed Rate Cut Speculations

Gold Price Movements: A Technical and Fundamental Analysis

Recent fluctuations in the XAUUSD have captured traders' attention, especially as speculations about a 50 bps Fed rate cut gain traction.

Fundamental Analysis: What’s Driving Gold Prices?

  • Current odds for a 50 bps rate cut stand at 59%
  • Falling US Treasury yields are fostering a favorable environment for gold
  • Market participants are keenly anticipating significant economic data releases

Technical Analysis: Charting the Path for XAUUSD

  1. Observe key resistance and support levels in current trading sessions
  2. Monitor relative strength indicators for signs of overbought or oversold conditions
  3. Watch for patterns that could indicate future price movements

As uncertainty looms over forthcoming economic indicators, gold's role as a safe haven remains paramount for investors.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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