Will Gold Make a New High Amid Prospect of Sep Fed Rate Cut?Fundamental approach:
- Gold gained this week, supported by renewed trade tensions following new US tariffs on major partners and rising expectations of a Fed rate cut in Sep.
- Safe-haven demand strengthened after weak US NFP data heightened concerns about economic growth and reinforced market bets on monetary easing, while US President Trump's tariff announcements drove risk aversion.
- Comments from Fed officials signaled openness to policy adjustments, keeping investors focused on future rate moves even as the US dollar softened and global equities stabilized.
- XAUUSD could remain resilient if upcoming US labor and inflation data continue to disappoint.
Technical approach:
- XAUUSD fluctuates within a broad range. The price is forming a big Triangle Formation, awaiting an apparent breakout to determine the next movement.
- If XAUUSD breaches above the Triangle Pattern and the resistance at 3433, the price may continue to advance with the measured target at 3600.
- On the contrary, closing below support at 3560 may prompt XAUUSD to continue range-bound movement by retesting support at 3273.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
