Gold (XAUUSD) is poised to set new records

Gold prices continue to rise. The market is turning bullish amid expectations of an imminent Federal Reserve interest rate cut.

XAUUSD trading key points

• Gold prices are developing a rally
• The market is poised to see two interest rate cuts by the end of 2024
• XAUUSD price targets: 2,444.44, 2,390.00

Fundamental analysis

The environment seems perfect for gold. The troy ounce reached 2,430 USD on Tuesday as the market is confident about an imminent US Federal Reserve interest rate cut.

Federal Reserve Chair Jerome Powell noted yesterday that the Federal Reserve would not wait for inflation to reach the 2% target before deciding on an interest rate reduction. The monetary policy will certainly be eased earlier, which is a positive signal for gold.

Contrary to this, the US dollar is now strengthening, supported by the growing popularity of former President Donald Trump.

XAUUSD technical analysis

On the XAUUSD H4 chart, a consolidation range continues to develop above 2,420.50. Today, 16 July 2024, the wave could continue to 2,444.44. Subsequently, the price might decline to 2,390.00. After reaching this level, the price could rise to 2,420.50 before falling to 2,355.40, representing the first target.

Summary

Gold prices are rising bolstered by the imminent easing of the US monetary policy. Technical indicators suggest a potential rise in XAUUSD to 2,444.44 followed by a decline to 2,355.40.