Inverted Head & Shoulders in Gold signals bullish breakout amid Fed cut expectations

Gold saw renewed dip-buying on Friday, rebounding from recent lows after Thursday’s pullback from a 1.5-week high. The metal remained supported as the US Dollar struggled to extend post-NFP gains, with concerns over President Trump’s massive spending bill fueling fears of a worsening fiscal outlook. Ongoing trade uncertainty also added to gold’s safe-haven appeal.
However, stronger-than-expected US jobs data led markets to scale back July Fed rate cut expectations, while an overall positive risk sentiment limited further upside. Still, gold maintained a firm tone heading into the European session and looked set to post its first weekly gain in three weeks.
XAU/USD TECHNICAL OVERVIEW
Technical Structure: Gold is showing signs of strength after finding consistent support at the 55-day SMA, helping to limit downside pressure. Price action remains just below the 20-day SMA, indicating that bulls are attempting to regain control but face immediate resistance on the upside. A notable Inverted Head & Shoulders pattern is developing on the 4-hour chart, signaling a potential medium-term bullish breakout if neckline resistance is cleared.
Weekly Trend: Neutral
Intraday Trend/ Intraday Strategy: The intraday trend remains bullish and favours the approach of Buying on Breakouts and Buying on Support
Major Support: 3327, 3311, 3300
Major Resistance: 3345, 3360, 3370
Recent News
Dow Jones Industrial Average slips into...
December 16, 2024
Live Charts
US CPI
December 11, 2024
Market Insights
Gold Futures Retrace Slightly but Stay E...
December 12, 2024
Live Charts
NASDAQ tumbles sharply from its all time...
February 27, 2025
Market Insights
Gold Price Steady Near Daily High as Saf...
May 05, 2025
Market Insights
US Tech 100 Testing Crucial Support Amid...
April 21, 2025
Market Insights