Gold bulls not ready to give up amid Fed rate cut bets, trade jitters, geopolitics

💡 DMK Insight

Gold’s struggle to maintain momentum below its monthly peak is a signal for traders: With XAU/USD hovering around the $5,150 mark, the lack of follow-through selling suggests a potential consolidation phase. This could indicate that traders are hesitant to push prices lower, possibly due to geopolitical tensions or inflation concerns that keep demand for gold relatively stable. For day traders, this environment might present opportunities for short-term scalps, especially if the price tests key support levels around $5,100. But here’s the flip side: if gold fails to break above the monthly peak, we could see a retracement that might trigger stop-loss orders for long positions. Monitoring the $5,100 level will be crucial; a break below could lead to a quick sell-off. Keep an eye on correlated assets like ADA, which is currently at $0.26, as shifts in gold sentiment can influence risk appetite across the board. In the coming days, watch for any economic data releases that could impact gold’s safe-haven status, as this might dictate the next significant price movement.