Market Alert: Gold Bulls Nervous as Rate Cut Hopes Fade Ahead of Fed Decision
The bulls are feeling uneasy as the highly anticipated rate cut on September 18, 2024, approaches. All eyes are on the Federal Reserve as they prepare to make their announcement.
Recent movements in gold futures indicate a potential gap-down at the beginning of the week, with weakness expected to persist until the Fed’s final decision is revealed.
Last Friday’s significant drop in gold futures suggests that the downward trend may continue in the coming days.
Technical Analysis: Bearish Signals in Gold Futures
Looking at the 1-hour chart, gold futures are showing signs of further decline. A bearish crossover has occurred, with the 9-day moving average (DMA) and 18 DMA both falling below the 50 DMA, indicating ongoing downward pressure.
On the 4-hour chart, gold futures failed to maintain above the crucial resistance level at $2,561, forming a bearish hammer pattern.
The daily chart also displays a bearish candlestick pattern from last Friday, which will need confirmation in the upcoming week’s first trading session.
Looking at the weekly chart, a bearish hammer formation from last week suggests the possibility of increased selling activity in the weeks to come.
Despite this bearish outlook, gold bulls may attempt to test the immediate resistance at $2,561 before the downtrend resumes. However, bears are currently in control, with bulls hovering in the overbought territory.
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