Gold bulls are on edge despite rising hopes for a rate cut on September 18, 2024 - a date millions will be closely watching as the Fed announces its decision.
Analyzing recent movements in gold futures, it's clear that the market could open the week with a gap-down, and the current weakness may persist until the Fed's final decision.
Last Friday's steep decline in gold futures suggests that this downward trend could continue into this week.
On the 1-hour chart, gold futures show a strong potential for further decline. A bearish crossover has formed, with the 9 DMA and 18 DMA both dipping below the 50 DMA, indicating continued pressure.
In the 4-hour chart, gold futures failed to hold above the key resistance level at $2,561, resulting in a bearish hammer formation.
The daily chart also shows a bearish candle formed last Friday, which still requires confirmation in the first trading session of the upcoming week.
On the weekly chart, the formation of a bearish hammer last week signals the likelihood of a selling spree in the weeks ahead.
However, gold bulls might make another attempt to test the immediate resistance at $2,561 before the downward trend resumes, as bears remain in control with bulls still in the overbought territory.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk is at the investor's own risk. We also do not provide any investment advisory services. We will never contact you to offer investment or advisory services.
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