S&P 500 holds near highs, but Fed cuts could spark short-term volatility before medium-term bullish momentum resumes.
Gold is holding near record highs, trading around the $3,650 mark after last week’s breakout. Price action is consolidating just below the peak, with bulls looking for momentum to push higher.
The rally has been fueled by a weaker dollar and political uncertainty abroad — Japan facing leadership changes after PM Ishiba’s resignation, and France’s government turmoil weighing on the euro. Safe-haven demand remains firm.
U.S. job revisions today could be the spark for the next leg. If revisions show the labor market is weaker than previously thought, it strengthens the case for deeper Fed rate cuts. Lower rates mean weaker yields and a softer dollar — both strong tailwinds for gold.
Note: Gold can stay overextended longer than most expect. Trying to pick tops has burned retail traders before. The safer play is to follow momentum rather than fight it.
S&P 500 holds near highs, but Fed cuts could spark short-term volatility before medium-term bullish momentum resumes.
DXY holds near support as traders await FOMC, with three cuts priced and data setting the next move.
Sterling stalls at resistance as soft UK growth data shifts attention to next week’s BoE meeting and balance sheet risks.
