Gold retains bullish bias as Fed rate cut bets counter USD uptick ahead of FOMC Minutes

💡 DMK Insight

Gold’s modest recovery today is a crucial signal for traders watching the broader market dynamics. After a sharp drop of over 2% yesterday, the bounce back to the $4,843-4,842 range suggests a potential short-term reversal. This could be driven by renewed safe-haven demand as economic uncertainties loom, particularly with inflation data and central bank policies in focus. Traders should keep an eye on the $4,850 resistance level; a break above could indicate a stronger bullish trend. Conversely, if gold fails to hold above this range, it might signal further downside risk, especially if the dollar strengthens or yields rise. It’s also worth noting that this recovery in gold could have ripple effects on correlated assets like silver and platinum, which often move in tandem. Watch for volatility in these markets as traders react to gold’s movements. Overall, the next few sessions will be critical for gauging whether this recovery is sustainable or just a temporary bounce.