Article by: ETO Markets
Gold's price action reflects a complex interplay between monetary policy expectations and fundamental drivers. The recent Federal Reserve meeting has established a more hawkish trajectory for 2025, with projected rate cuts reduced to 50 basis points from the previously anticipated 100 basis points. This policy shift has created immediate resistance at $…, validated by declining volume on recent attempts to breach this level. The softer-than-expected PCE data (2.4% YoY vs. 2.5% forecast) has provided temporary support, though the impact remains constrained by the Fed's cautious stance on easing. Chinese seasonal demand ahead of the Lunar New Year is creating a fundamental floor, evidenced by sustained buying pressure above the $… psychological level. The technical structure suggests a consolidation phase, with price action compressed between major moving averages and key support/resistance zones.
From a technical perspective, the market has established an immediate support at $…, with the price currently testing the $… level, reinforced by the convergence of the 55-day exponential moving average (…) and significant volume profile. This zone is further strengthened by multiple daily closes and the formation of higher lows, suggesting strong institutional buying interest. Primary resistance is clearly defined at $…, marked by a double top formation and declining volume on recent tests. The upper Bollinger Band at $… provides an intermediate resistance level, while the lower band at $… aligns with the 100-day exponential moving average at $… to form a robust support cluster. The current RSI readings (… on 14-period) indicate neutral momentum, though declining peaks suggest weakening upside momentum.
