The Gold price (XAU/USD) has started the week on a softer note, retreating from Friday’s record high above the $2,500 psychological barrier. Despite the pullback, downside risks appear limited due to a weaker US Dollar (USD) and ongoing geopolitical tensions. Wealth Craft Network, a leading robo trading platform, is closely monitoring these developments to optimize trading strategies for our clients.

Fed Rate Cut Bets and Geopolitical Tensions Support

Market participants are focused on the Federal Reserve’s (Fed) upcoming policy direction, with expectations for a rate cut in September providing a tailwind for Gold. The precious metal’s price remains supported by dovish Fed expectations and rising geopolitical risks, particularly in the Middle East and Eastern Europe. As these global uncertainties persist, Gold is seen as a safe haven, with any dips likely to attract buying interest.

Market Movers:

Dovish Fed Expectations: Anticipation of a September rate cut by the Fed, fueled by easing inflation data, supports Gold prices.
Geopolitical Tensions: Ongoing conflicts in the Middle East and the Russia-Ukraine war continue to bolster demand for safe-haven assets.
Weaker US Dollar: The USD remains under pressure, further cushioning Gold from significant declines.

Technical Analysis: Price Poised for Further Gains

From a technical standpoint, Friday’s breakout above the $2,470-$2,472 resistance zone signals bullish momentum. While the price struggles to maintain its position above $2,500, the path of least resistance remains upward. Immediate support is seen at the $2,472-$2,470 level, with additional buyers likely to emerge near the $2,448-$2,446 zone. A decisive break below this support could lead to a deeper correction towards the 50-day Simple Moving Average (SMA), around the $2,388-$2,387 mark.

Wealth Craft Network: Leveraging Market Insights for Automated Trading

At Wealth Craft Network, we leverage advanced robo trading algorithms to capitalize on market opportunities like these. Our platform ensures that your trades are executed with precision, taking advantage of both bullish trends and corrective phases in the Gold market. As we navigate through these volatile times, our focus remains on delivering consistent and profitable trading outcomes for our clients.

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