FxWirePro- Gold hits fresh all-time high after fed 50 bpbs rate cut, good to buy on dips

Gold gained momentum after the Fed cut rates surprisingly by 50 bpbs. It hit a fresh all-time high of $2590 and is currently trading around $2589.02.

Fed cuts rates by 50 bpbs to 4.75-5% compared to market expectations of 25 bpbs rate cut.It signals towards two to three 25 bps cuts in the next two meetings of 2024.

The central bank mentioned that Job gains have slowed and inflation is moving towards a fed target of 2% but remains slightly elevated.

Technical:

The near–term support is around $2560, a break below the target of $2544/$2535/$2520/$2470. Major bearish continuation only below $2470.The yellow metal faces minor resistance around $2592 and a breach above will take it to the next level of  $2600/$2622/$2650.

Indicator (4-hour chart)

CCI (14)- Bullish

CCI (50)- Bullish

Average directional movement Index - Bullish

It is good to buy on dips around $2578-80 with SL around $2560 for TP of $2650.