Gold Spot / U.S. Dollar
Long

Gold's Rally Continues: Why a Fed Cut Isn't Slowing It Down

79
Hello, traders!

Gold started the new week on an impressive note, trading at $3,685 in early Monday's session. The main drivers are the market's continued reaction to the Fed's recent rate cut and escalating geopolitical events. So, the big question is, how far will this rally go?

Fundamental Analysis: Why Is Gold Still Soaring?

Although the Fed cut interest rates by 0.25%—the first time in 2025—Chair Jerome Powell maintained a cautious stance, calling it a "risk management cut." While this initially caused some market jitters, in the long run, lower interest rates are a strong supporting factor for gold.

Lower Rates: They reduce the opportunity cost of holding gold, which is a non-yielding asset.

Geopolitical Tensions: Conflicts in Ukraine and the Middle East are escalating, boosting safe-haven demand. Ukrainian President Zelenskyy reported that Russia carried out a major drone and missile attack, reaffirming gold's role as a protective asset against global risks.

Technical Analysis: Breaking Resistance, The Uptrend Continues
Gold had a powerful rally at the start of the week, successfully breaking the key resistance zone at $370x. The price is currently hovering around $3720 with a slight correction, but the uptrend remains firmly intact.

Outlook: Given the strong upward momentum, short-selling (going short) with a tight stop-loss is extremely risky. We will continue to prioritize long positions (going long) as long as gold holds above the $370x level.

Suggested Trading Strategy (Strict Risk Management):

BUY SCALP
Zone: $3413 - $3711
SL: $3407
TP: $3716 - $3721 - $3726 - $3731 - $3741

BUY ZONE
Zone: $3700 - $3798
SL: $3790
TP: $3708 - $3718 - $3728 - $3738 - $3758

SELL ZONE
Zone: $3734 - $3736
SL: $3744
TP: $3726 - $3716 - $3706 - $3796 - $3779

The market is showing unpredictable volatility. Can gold overcome all barriers and set new records? Share your opinion in the comments below! 👇

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