This morning, as the session opened, Gold continued to set a new ATH at the 4186$/ounce level.
Yesterday, although there was a strong correction from the 418x area down to 4090$/ounce, Gold did not take long to regain its upward momentum and create a new ATH.
The first reason comes from last night’s speech by FED Chairman Powell, who expressed concerns about the challenges of cutting interest rates.
If rates are cut too quickly, it could support the job market but would slow the progress of curbing inflation.
On the other hand, cutting rates too slowly would create more difficulties for the labor market — especially as the U.S. government shutdown has already put strong pressure on employment.
The second reason is Donald Trump’s statement that he would “use force” in the Gaza Strip if Hamas does not disarm after the ceasefire agreement. Given Hamas’s defiance, a strong U.S. crackdown on Hamas is a likely scenario.
If both of these factors continue in a negative direction, Gold will likely continue to rise sharply. 4200$ may only be a temporary stop in a much larger wave the market is about to face.
Technical Analysis:
In the short term, Gold’s bullish momentum remains solid => Watch for BUY opportunities when Gold retraces to the 413x area according to the Fibonacci retracement, with a target toward 4200$/ounce.
Trí Hùng
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