Gold is currently consolidating around the 3050 level as market participants await new catalysts for momentum. Recent updates from the Federal Open Market Committee (FOMC) announced no changes to rates, a reduction in quantitative tightening, and an adjustment in growth and inflation forecasts.
Fed Chair Powell noted uncertainty with Trump’s policies but stated the economy remains healthy. As long as rate hikes are not mentioned, a positive trend may continue, with technical pullbacks presenting dip-buying opportunities.
Technical Analysis Overview
On daily charts, gold shows consolidation around the 3050 mark. Buyers may find better risk-to-reward opportunities near the 2955 level, while sellers will look for a break below this to target 2832.
On the four-hour chart, there is minor support at the 3020 level, potentially leading to a rally if buyers engage here. Sellers, however, will aim for a break lower to reach the 2955 level.
The one-hour chart indicates a counter-trendline suggesting a pullback that could evolve into a bullish pennant if a breakout happens. If the price rises, bullish positions might increase, while sellers will focus on the counter-trendline, looking for a break below the neckline and towards 2955.
This consolidation phase reflects market caution, with price stability prevailing as traders look for definitive moves. The latest policy stance from the Federal Reserve confirmed steady interest rates alongside a slowdown in balance sheet reductions. Adjustments to economic projections hint at a more measured approach to future decisions, with inflation forecasts receiving notable attention. Powell acknowledged unpredictability surrounding Trump’s policies yet reassured that economic activity remains robust.
Market Sentiment And Outlook
With no immediate plans to raise rates, sentiment appears supportive of maintaining an upward trajectory. However, corrective pullbacks may provide opportunities for market participants to enter long positions at more favourable levels.
From a technical perspective, gold remains within a tight range, with 3050 as the focal point. Daily charts point to 2955 as a level where demand could materialise, offering buyers a more attractive entry with a balanced risk-reward setup. If selling gains momentum and breaches this support, attention will shift towards 2832 as the next key downside objective.
In shorter time frames, interim support at 3020 stands out. If buyers hold this level, an advance could follow, reinforcing short-term bullish sentiment. Should sellers push decisively below, pressure is likely to intensify, drawing prices closer to 2955.
On the one-hour chart, a counter-trendline suggests the possibility of a pullback morphing into a bullish continuation pattern. A confirmed breakout may encourage additional buying, reinforcing momentum. Conversely, a failure to hold recent gains could lead to further declines, with those favouring the downside watching for a break underneath key technical structures en route to 2955.
The coming weeks present a balancing act as market forces react to policy updates, technical patterns, and broader economic shifts.
