Gold Analysis 18/09: Are We Preparing To Buy Again? (Chart)

(MENAFN- Daily Forex) Today's Gold Analysis Overview:

• The overall of Gold Trend: Still strongly bullish.
• Today's Gold Support Points: $3615 – $3560 – $3500 per ounce.
• Today's Gold Resistance Points: $3680 – $3720 – $3760 per ounce.

Today's Gold Trading Signals:

• Sell gold from the resistance level of $3710 with a target of $3580 and a stop-loss of $3770.
• Buy gold from the support level of $3560 with a target of $3740 and a stop-loss of $3520.

Technical Analysis of Gold Price (XAU/USD) Today:

Amid the announcement of a U.S. interest rate cut, the gold price index had an opportunity to move toward the resistance level of $3708 per ounce, the highest in the history of the gold trading market. Gains in the gold market increased after the U.S. Federal Reserve lowered the interest rate, as lower borrowing costs boosted the attractiveness of trading gold. The Federal Reserve lowered the benchmark interest rate by a quarter of a percentage point to a range of 4% to 4.25% by an 11-to-1 vote, with Governor Steven Miran opposing a larger half-percentage-point cut, while others, who were likely to reject it, supported the majority. Policymakers pointed to slowing job growth and rising inflation, which underscores the continued risks to both sides of the Fed's dual mandate.

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According to performance across gold trading platforms , the price of gold has risen by about 41% since the beginning of 2025, driven by strong buying by global central banks, safe-haven flows, and a shift away from the declining US dollar. However, according to trading, as previously expected, spot gold prices were subject to profit-taking, pushing prices towards $3,650 per ounce at the start of Thursday's trading session. Gold's upward trajectory continues, and its gains continue to push technical indicators towards strong overbought levels Rises as Markets Assess Interest Rate Decisions

According to forex trading, the US dollar index (DXY), which measures the performance of the US currency against a basket of other major currencies, initially fell to its lowest level since 2022 before recovering to trade at 97.00 at the time of writing, as traders digested the latest US Federal Reserve decision. The Federal Reserve cut interest rates by 25 basis points, as expected-its first cut in borrowing costs this year-and signaled an additional 50 basis point cut before the end of the year, slightly more than expected in June.

In the press conference, Fed Chair Powell indicated that the risks of rising and persistent inflation have receded since April, describing today's move as a "risk management" cut rather than the beginning of a new easing cycle. Meanwhile, the newly appointed governor, Steven Miran, voted for a larger 50-basis-point cut, which led to less opposition than the markets had expected.

EURUSD Chart by TradingViewTrading Tips:

Be careful monitoring market movements and wait for a stronger decline in gold prices before considering buying again the price of gold rise in the coming days?

As you can see, the gold market is experiencing renewed buying momentum, with prices approaching $3,700 per ounce, as the Federal Reserve cuts interest rates and hints at further cuts through the end of the year and into 2026. As expected, the Federal Reserve cut interest rates to a range of 4.00% to 4.25%. Meanwhile, the updated economic projections show the federal funds rate lower than previously estimated, even as inflation pressures continue to rise.

According to trading, gold prices stabilized in positive territory in their initial reaction to the US central bank's shift in focus toward the slowing labor market. Recent indicators point to a slowdown in economic activity in the first half of the year. Job growth slowed, and the unemployment rate rose slightly but remains low. Inflation also rose and remains moderately elevated, according to the central bank's monetary policy statement. It added, "The committee pays close attention to the risks to both sides of its dual mandate and sees that downside risks to employment have increased."

In addition to today's interest rate cuts, the Fed's updated federal funds rate forecast-also known as the dot plot-indicates the possibility of one additional cut this year and two in the next. The central bank's median estimates suggest that the federal funds rate will end the year at 3.6%. The updated dot plot indicated two additional 25-basis-point cuts this year, with an additional 50-basis-point easing next year, followed by a single 25-basis-point cut in 2027, all more lenient than expected, which indicates an increase in cuts in advance, similar to what the OIS curve was recently discounting.

Aside from the adjustments in interest rate expectations, the US central bank maintains a relatively stable path. For the gold market, other factors supporting continued gains in the coming days include global trade and geopolitical tensions, central bank gold bullion purchases, and a weaker US dollar.

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