GOLD Gains Momentum Amid Fed's Dovish Shift and Central Bank

GOLD Gains Momentum Amid Fed's Dovish Shift and Central Bank Meetings

Gold prices continue their upward trajectory, building on the solid recovery from the $1980 area. With modest intraday gains heading into the European session, the precious metal seems poised for further appreciation following the Federal Reserve's (Fed) recent dovish shift.

The Fed's signal that it has concluded its interest rate hikes, along with the indication of three potential rate cuts in 2024, has led to a decline in US Treasury bond yields. This dovish stance further weakens the US Dollar (USD), providing support for the non-yielding Gold price. Additionally, ongoing geopolitical risks and concerns about China's economic situation contribute to the positive outlook for Gold.

Traders, exercising caution in the current risk-on mood, are awaiting key central bank meetings scheduled for later today. The Swiss National Bank (SNB), the Bank of England (BoE), and the European Central Bank (ECB) are all set to announce their policy decisions, introducing the possibility of increased market volatility. The release of US monthly Retail Sales figures is also anticipated to impact Gold prices.

With the backdrop of these factors, our analysis suggests a potential long continuation for Gold, with targets set around $2060 and $2070. Investors are advised to closely monitor these developments for trading opportunities in the precious metal.


Our preference

Long positions above 2009 with targets at 2060 & 2070 in extension.