Gold to Target @2,700 mark as Bulls take advantage of fed cut
Fundamental Influence of Fed Rate Cut:
Impact on Gold: Bullish target for the week 2,700 mark
When the Federal Reserve cuts interest rates, especially by a significant margin like 50 bps, it generally weakens the U.S. dollar. Being priced in dollars, gold often benefits from a weaker dollar as it becomes cheaper for foreign investors, leading to increased demand.
Additionally, lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making gold more attractive as a safe-haven asset. that being said, there is bullish momentum for gold, which aligns well with the broader macroeconomic impact of the Fed’s interest rate cut. Key levels like 2,541 and 2,530 should be monitored for reversals or pullbacks, with further upside possible if gold maintains its momentum. The rate cut enhances the attractiveness of gold, and we could see continued upside movement in the near term.
Current Market Action:
The price appears to be trending higher, breaking through several resistance zones. The "Ask" price around 2,613.57 shows that the market is trading relatively high, with the recent price action suggesting bullish momentum. my long target for this week and the coming end of the month will be targeting the 2,700 mark as my 1st Tp before we can see another pullback but for now am with the bulls on this one
Impact on Gold: Bullish target for the week 2,700 mark
When the Federal Reserve cuts interest rates, especially by a significant margin like 50 bps, it generally weakens the U.S. dollar. Being priced in dollars, gold often benefits from a weaker dollar as it becomes cheaper for foreign investors, leading to increased demand.
Additionally, lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making gold more attractive as a safe-haven asset. that being said, there is bullish momentum for gold, which aligns well with the broader macroeconomic impact of the Fed’s interest rate cut. Key levels like 2,541 and 2,530 should be monitored for reversals or pullbacks, with further upside possible if gold maintains its momentum. The rate cut enhances the attractiveness of gold, and we could see continued upside movement in the near term.
Current Market Action:
The price appears to be trending higher, breaking through several resistance zones. The "Ask" price around 2,613.57 shows that the market is trading relatively high, with the recent price action suggesting bullish momentum. my long target for this week and the coming end of the month will be targeting the 2,700 mark as my 1st Tp before we can see another pullback but for now am with the bulls on this one
Nota
I have been holding on with the bulls with the hopes that the Gold will break the 2680 handle A sustained break above the all-time high of $2,686 will trigger a fresh advance to the $2,700 round. Further up, buyers could challenge the $2,750 but my 1st take profit is set at 2,700 as I had previously analysed on Sept 20th 
Penafian
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