XAUUSD – Is Gold Gearing Up for the Next Leg Higher?

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🌐 Macro Outlook – Dovish Fed Tone Boosts Gold Appeal
Gold (XAUUSD) is showing renewed strength following Fed Chair Powell’s testimony. While he maintained a cautious stance, he acknowledged that tariff-related inflation is easing. Markets interpreted this as a sign that rate cuts may come sooner – potentially as early as July.

📉 Lower rate expectations → Reduced holding cost for gold → Increased investor interest.

As a non-yielding safe haven, gold tends to benefit when real yields decline.

🏛️ Fed Policy Outlook – The Tone Is Evolving
🔹 Powell’s Message: Data-driven and flexible, signalling a Fed willing to respond if inflation continues to cool.
🔹 Rate Cut Timing: While September remains the base case, markets are now pricing in a potential July move. CME FedWatch shows a 70.1% chance of rates falling to 4.00–4.25% by September.

💡 This subtle repricing adds momentum to the bullish gold thesis. Current price consolidation near $3,300–$3,320 may reflect smart money positioning for an upside break.

💰 Capital Flow Dynamics – Gold vs. USD
Gold and USD both act as safe havens, but current flows suggest a rotation:

🔄 If Powell maintains a dovish tone:
▪ USD weakens as yields fall
▪ Gold sees renewed inflows amid better risk-reward and geopolitical risks

This is already evident in gold’s resilience at recent highs.

📊 Technical View (H4/M30) – Bullish Momentum Building
Gold has broken out of a falling channel and is now consolidating in a mild ascending structure. This points towards a potential continuation move.

📌 Key Levels to Watch:

🟢 Buy Zones (Support):

$3,302 – $3,311 → Strong demand zone

$3,286 → Key fallback level if lower support is tested

🔴 Sell Zones (Resistance):

$3,352 – $3,371 → Major resistance, aligned with 0.5 & 0.618 Fib levels

$3,391 – $3,395 → Breakout here = bullish confirmation for longer-term targets

📈 EMA Structure (13, 34, 89, 200):

Price is trading above short-term EMAs → Positive near-term bias

Longer EMAs are converging → Potential Golden Cross setup

🎯 Trade Setups:

🟢 Swing Buy Idea:

Entry: $3,286 – $3,284

Stop Loss: $3,280

Targets: $3,290 → $3,294 → $3,298 → $3,302 → $3,306 → $3,310 → $3,315 → $3,320

🟢 Scalp Buy:

Entry: $3,302 – $3,300

SL: $3,295

TP: $3,306 → $3,310 → $3,314 → $3,318 → $3,322 → $3,326 → $3,330

🔴 Sell Zone 1:

Area: $3,353 – $3,355

SL: $3,360

TP: $3,350 → $3,346 → $3,340 → $3,335 → $3,330 → $3,320

🔴 Sell Zone 2:

Area: $3,372 – $3,374

SL: $3,378

TP: $3,370 → $3,366 → $3,362 → $3,358 → $3,354 → $3,350

⚠️ Keep an Eye On:

Fed Speeches: Any comment on inflation or rate direction could cause rapid sentiment shifts

Geopolitical Flashpoints: Ongoing or new tensions = fuel for gold upside

📌 Final Take:
Gold is showing early signs of bullish continuation ahead of the July FOMC. Dovish signals, softer inflation, and global uncertainty provide a solid backdrop. Smart entries near key zones and disciplined risk will be essential as we approach decision time.

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