Gold has officially set a new ATH at $3707/ounce at 1 AM today when the FED announced a 25 basis point rate cut. This marks the first rate cut of 2025.
Immediately, gold was pushed up to $3700/ounce. However, what I predicted yesterday has happened – gold had already priced in the move a day earlier, and the official rate cut announcement turned into a major trap set to catch the market.
Right after the announcement, gold sharply swept both sides of the 3646 – 3700 range within just 15 minutes and repeated the move twice during the night, with a fluctuation of more than 60 points.
This shows that the bullish momentum may have stalled around $3700, and gold’s trend is beginning to shift. In the short term, gold is likely to retrace back to the 35xx zone.
The market will remain cautious, waiting for PCE data to be released at the end of next week to look for further signals on whether inflation is being contained before the FED decides on the upcoming rate path.
Technical Analysis:
In the short term, gold may correct back to the 361x – 360x range before taking the next move.
Sell zones to consider:
1: Sell from 3652
2: Sell when gold slightly retraces to 3670 – 3674
Trí Hùng
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