Gold reclaims $4,300 on Fed rate cut tailwinds – Commerzbank

💡 DMK Insight

Gold’s surge past $4,300 per ounce is a direct response to the Fed’s 25bps rate cut, and here’s why that matters: With Chairman Powell hinting at potential further easing due to labor market concerns and tariffs, traders should brace for continued volatility in the gold market. A rate cut typically weakens the dollar, making gold more attractive as a hedge. This move could also trigger a broader rally in precious metals, especially if inflation fears resurface. Watch for resistance levels around $4,350, as a break above could signal a strong bullish trend. But don’t ignore the flip side—if the Fed’s easing doesn’t lead to economic recovery, gold could face downward pressure as traders reassess their positions. Keep an eye on the labor market data and any tariff updates, as these will be crucial in shaping market sentiment. The next few weeks could be pivotal, especially if gold maintains its momentum above $4,300. Monitor the daily charts for signs of consolidation or reversal patterns that could indicate where gold is headed next.