Gold rises again... Is a rate cut approaching?
The price of gold continues to rise today, primarily supported by U.S. inflation data that came in below expectations, increasing the likelihood that the U.S. Federal Reserve will cut interest rates soon.
Weak inflation data has pressured the strength of the U.S. dollar and U.S. Treasury yields, providing additional support for gold as a safe haven.
Currently, market expectations indicate that the probability of the Fed cutting rates in September is up to 68%, which is positive for gold buyers.
Main pressure: the 3390-3400 area (weekly Fibonacci correction level of 78.6%).
2. Four-hour level - checking momentum
Wave structure: The lowest level at 3320 can be considered the end of wave C, and the current movement is sub-wave 3 of the driving wave 3, with a theoretical target at 3415 (extension level 1.618).
Pay attention now to the rise and fall. However, under the influence of geopolitical news, the bulls' range may widen; the resistance area at 3435 has been broken, and the upper side continues to look at 3468-3493. There was almost no decline at the beginning of trading; instead, the price rose. The current area between 3400 and 3405 forms a strong and weak turning point, and the area 3380 forms a long and short turning point; in the short term.