Market morning brief
After the Fed's expected rate cut, the market saw a "buy the rumor, sell the fact" reaction. Spot gold traded in a consolidation pattern on Thursday. The intraday high reached $3,672.94/oz and the low touched $3,628.04/oz, closing at $3,644.36/oz. In this morning's session, gold remains rangebound and is trading near $3,639.00/oz.
Core drivers
- Policy expectations realized: The Fed's 25 bp cut met market expectations, prompting some longs to take profits.
- Technical high‑level consolidation: After hitting record highs, the price has entered a normal technical correction.
- Safe‑haven support: Global trade tensions and geopolitical uncertainty continue to provide downside support for gold.
Morning trading strategy guide
Gold (XAU/USD):
- Range: 3628.00 – 3647.00 USD/oz
- Approach: Consider range trading (sell near resistance, buy near support), with light position sizing.
Breakout rules:
- If price breaks below 3628.00, it may test 3618.00 and 3608.00. Consider following the trend with short positions; set stop loss at 3633.00.
- If price breaks above 3647.00, it may test 3657.00 and 3667.00. Consider following the trend with long positions; set stop loss at 3642.00.
Silver (XAG/USD):
- Range: 41.440 – 41.960 USD
- Approach: Consider range trading (sell near resistance, buy near support).
Breakout rules:
- If price breaks below 41.440, targets are 40.900 and 40.400. Consider short positions with stop loss at 41.640.
- If price breaks above 41.960, targets are 42.400 and 42.800. Consider long positions with stop loss at 41.760.
Risk warning: Trading markets carry unpredictable risks, including but not limited to 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.