Gold Rebounds as Market Stabilizes, Fed Rate Cut Speculation Supports Bullish Outlook

Gold regained traction on Thursday, bouncing back after a sharp decline in recent days.

This fresh strength indicates that the market is stabilizing following a turbulent period, with broader bullish trends poised to regain control.

The yellow metal has benefited from increasing expectations that the Fed will begin cutting interest rates as early as September. Speculation is mounting that the initial rate cut could be stronger than anticipated (0.5% vs. 0.25%), driven by signs of an impending US policy easing cycle and worsening economic conditions.

Continued economic slowdown and rising concerns over US debt are likely to further bolster gold prices, contributing to an overall bullish outlook.

The technical picture on the daily chart is firming, with momentum turning positive and the RSI moving north above the neutrality zone. A close above the key pivots at $2407/14 (Fibo 38.2% of $2477/$2364 / 20DMA) would strengthen positive signals and pave the way for further recovery.

In the near term, the action is expected to remain biased higher as long as it holds above the psychological $2400 level.

Res: 2414; 2420; 2434; 2450
Sup: 2400; 2391; 2379; 2364