XAUUSD - 2024/09/30

Last day of the month we can expect possible profit taking on the Gold market than can cause increased volatility and uncertain moves, trade with caution.

Technicals:
The market came into my first AOI, now i am waiting for NY session to see if i we can get another touch into the zone and a entry confirmation to continue bullish, if we however break below the first zone we have the second zone just a bit lower that we can look for longs from.

Fundamentals:
Last week Gold sets a new record at $2685.64, driven by U.S. Dollar weakness as Fed rate cuts fuel safe-haven demand.
Fed shifts focus to labor market stability, reducing U.S. Dollar demand and pushing gold closer to the $2700 level.

Fed Chair Jerome Powell’s recent comments suggest a shift in focus toward maintaining labor market strength over aggressive inflation control. This pivot reduced the greenback’s appeal as a safe-haven asset, exacerbating its decline. Lower inflation and moderating consumer spending have reinforced expectations that the Fed will continue easing monetary policy.

In the near term, the U.S. dollar is expected to face continued downward pressure. Fed rate cuts are likely to weigh on the greenback, especially as major currencies like the euro and yen stabilize. Gold remains a strong alternative to the dollar, supported by safe-haven demand and expectations of further monetary easing. Analysts predict continued bullish momentum for gold, with potential to breach $2700 by year-end if the Fed continues cutting rates and global economic uncertainty persists. Traders should monitor key U.S. economic data and central bank commentary for further market cues.