The daily outlook for XAUUSD is cautiously bearish for a short-term correction, but the overall long-term bullish trend remains intact. Yesterday’s Federal Reserve rate cut, which was largely priced in, has led to profit-taking and a rebound in the US Dollar. This has put downward pressure on gold, pushing it off its recent all-time high of $3,707. The market is now in a phase of consolidation and retracement as it digests the Fed’s “less dovish” tone than anticipated.

Changes to Weekly Outlook

The weekly outlook, which was strongly bullish, has been slightly altered to reflect a potential for a deeper retracement. While the fundamental drivers for gold (Fed easing expectations, geopolitical tensions, and central bank demand) are still in place, the immediate post-Fed price action suggests that the market may need to correct lower before resuming its upward trajectory. The strong rebound in the US Dollar following the Fed’s nuanced commentary has shifted the short-term sentiment from a continued bullish charge to a more a period of consolidation and profit-taking.