Gold adds to strong intraday gains; eyes $4,950 as Fed rate cut bets undermine USD

💡 DMK Insight

Gold’s bounce back to near $4,950 is more than just short-covering; it signals potential shifts in trader sentiment. After two days of heavy liquidation, this rally could indicate that traders are reassessing their positions, especially with ongoing economic uncertainties. The $4,950 level is crucial—if it holds, we might see a more sustained recovery, but a failure to maintain this level could trigger further selling pressure. Keep an eye on broader market indicators, like inflation data and geopolitical tensions, as they could influence gold’s trajectory. Also, watch for any shifts in the U.S. dollar, as a stronger dollar typically weighs on gold prices. The real story here is whether this rally can attract new buyers or if it’s just a temporary blip before another downturn. For now, monitor the $4,950 level closely; a decisive break above could open the door to higher targets, while a drop below may lead to renewed bearish sentiment.