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Gold (XAUUSD) surged to a new record high after the Federal Reserve delivered a 25 basis point rate cut. Subsequently, the rally gained traction as the Fed projected two more cuts this year, fueling a sharp decline in the dollar and renewed demand for gold. However, a cautious tone from Fed Chair Powell soon triggered a swift pullback. Despite the volatility, rate-cut expectations remain intact, and gold continues to draw support from dovish policy signals and rising global risks. Overall, gold’s long-term trend remains intact, making short-term pullbacks attractive for strategic entries.

Gold Reaches All-Time High before Reversing on Powell’s Tone
 

Gold surged to an all-time high of $3,707 after the U.S. Federal Reserve announced a 25 basis point rate cut. The policy move was widely expected, but the Fed’s updated projections hinted at two additional rate cuts later this year. This reinforced expectations of further easing, prompting a broad decline in the dollar and a sharp move in gold. The initial rally signalled growing investor demand for gold as a hedge against falling real yields and economic uncertainty.

However, the rally didn’t last long. In his post-meeting press conference, Fed Chair Jerome Powell took a more measured tone. Specifically, he emphasised that future rate cuts would depend on economic data. He further described the move as a precautionary step taken in response to labour market weakness. Consequently, Powell’s cautious tone boosted demand for the Dollar and led to a retreat in gold, as investors reconsidered the outlook for further rate cuts.

Despite the reversal, expectations for further rate cuts remain firm. The CME FedWatch Tool shows an 87.7% chance of another 25 bps cut in October, rising from 74.3% just a day earlier. At the macro level, gold remains supported due to the Fed’s easing bias. Any weakness in upcoming U.S. job data or escalation in geopolitical risks could renew demand for safe-haven assets. Overall, fundamentals continue to favour gold, suggesting that price dips could serve as entry points for strategic positioning.

Gold Breakouts Align with Parabolic Curve, Reinforcing Bullish Momentum
 

The gold chart below shows a strong and well-defined structural uptrend on the weekly timeframe. Since late 2022, gold has been rising in a parabolic pattern, consistently breaking above key resistance levels and forming higher support zones. Despite short-term pauses, gold has sustained its broader upward momentum. After each breakout, the price formed a firm base before moving higher, reinforcing the strength of the overall trend.
 

Additionally, the chart shows four primary breakout levels that consistently acted as support during the uptrend. Gold extended higher after breaking $3,500, but has pulled back slightly below the $3,670 level. Furthermore, a blue parabolic curve has shaped the rally, providing consistent support throughout the move. Most recently, gold broke out from a key consolidation zone, triggering another strong push toward record highs.

At the same time, an upper resistance line is creating a rising wedge formation, but momentum remains strong within the ongoing uptrend. If the current trend continues, gold could move toward the $4,000 level in the coming months. Momentum and volume continue to show strength, as firm weekly closes and bullish candlestick structures have confirmed each breakout. The persistent momentum indicates strong institutional demand and confirms the ongoing uptrend.

Gold Outlook: Sustained Breakouts Keep Bullish Momentum Alive
 

Gold has eased slightly from recent highs but continues to trend higher, supported by a strong technical structure and consistent breakout momentum. Its parabolic pattern and series of confirmed breakouts signal sustained strength. Gold also continues to draw support from dovish policy signals and persistent geopolitical risks. As long as prices hold above key support levels, the broader rally remains intact, with the $4,000 target still in sight. 

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