Market morning summary
In the early hours, the Federal Reserve cut the federal funds rate by 25 basis points to 4.00%–4.25%, in line with expectations, but Chair Powell’s remarks caused market volatility. Spot gold yesterday surged then pulled back, with a high of 3707.59 USD/oz, a low of 3646.24 USD/oz, and a close at 3659.84 USD/oz. In this session’s Asian morning, gold is holding a tight range and is trading around 3665.00 USD/oz.
Key drivers
- Fed policy: The rate cut matched expectations, but Powell’s comments introduced uncertainty about the future policy path, causing gold price swings.
- Safe-haven demand: Global trade tensions and geopolitical uncertainty continue to support gold.
- Technicals: Gold is trading near historical highs in a consolidation pattern. Hourly and 15-minute charts show range-bound action; short-term focus is on the breakout direction.
Morning trading strategy guide
Gold (XAU/USD)
- Range: 3646.00 – 3667.00 USD/oz
- Idea: In range, consider selling high and buying low with light positions.
Breakout strategy:
- If price breaks below 3646.00, it may test supports at 3636.00 and 3626.00. Consider following the downtrend with short positions; stop-loss at 3651.00.
- If price breaks above 3667.00, it may test resistances at 3676.00 and 3686.00. Consider following the uptrend with long positions; stop-loss at 3662.00.
Silver (XAG/USD)
- Range: 41.090 – 42.230 USD/oz
- Idea: In range, consider selling high and buying low with light positions.
Breakout strategy:
- If price breaks below 41.090, targets are 40.700 and 40.200. Consider following the downtrend with short positions; stop-loss at 41.290.
- If price breaks above 42.230, targets are 42.700 and 43.200. Consider following the uptrend with long positions; stop-loss at 42.030.
Risk warning: Markets are unpredictable and may result in loss of principal. This analysis is for reference only and does not constitute direct investment advice. Investors should make independent judgments and decisions based on their own risk tolerance.