Gold is showing strength today. XAU/USD has pushed beyond $3,750, extending its upside momentum — driven by resilient demand..
Gold is showing strength today. XAU/USD has pushed beyond $3,750, extending its upside momentum — driven by resilient demand, softening U.S. macro data, and hopes that the Federal Reserve will lean into rate cuts later this year.
That said, this is far from a one-directional rally. Traders must stay alert, as commentary, data, and sentiment swings can quickly shift the narrative.
Markets are still pricing in potential rate reductions this year. Even though Fed officials have sounded cautious, the underlying expectation is that milder inflation or weak economic prints could open the door for easing. That belief is helping gold’s narrative.
Concerns about a U.S. government shutdown and mounting global uncertainties are pushing flows toward safe-haven assets like gold. When risk perception rises, gold often gets a bid.
Gold clearing above $3,750 is a psychologically and technically important move. It suggests momentum is gathering, but the path ahead is likely to test both support and resistance levels.
Upcoming U.S. inflation, jobs, and central bank commentary will be key. Any surprise — especially signs that inflation is cooling — could re-energize gold’s upside. Conversely, hawkish surprises could trigger pullbacks.
Here’s what to watch in the charts:
Zone Role Significance
Support Zone $3,720 – $3,740 .A pullback into this zone may offer entry for bulls if support holds
Resistance Zone $3,800 – $3,810 A sustained break above here could unlock further gains
Intermediate Pivot $3,770 Often acts as the battleground for bulls vs. bears in trending markets
Additional observations:
Gold’s recent breakout above $3,750 shows the bulls have regained control — at least for now. But the outlook is far from settled. The next moves will likely depend on U.S. macro surprises and Fed messaging.
Stay nimble, focus on your risk management, and watch how gold reacts to $3,720–$3,740 support and $3,800 resistance. A decisive move beyond either zone could define the near-term trend.
Disclaimer: This content is for informational purposes only. It does not constitute investment advice or trading recommendations. Trading precious metals, foreign exchange, and derivatives involves substantial risk. Always conduct your own due diligence and consider seeking advice from a qualified professional before making financial decisions.
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