Bolster gold purchases when it climbs above $4,370

Strong upward momentum swept through the gold market after the US Federal Reserve’s (Fed) meeting last week. This boost was triggered by a long-awaited interest rate cut and the prospect of further easing. In the coming days, the precious metal is projected to climb higher, despite the potential for a few short-lived corrections.

Fed officials were convincingly dovish in their commentary, signaling near-term rate cuts. The central bank’s approach weighed on the dollar, letting non-yielding gold shine brighter and capture investor attention. A quantitative easing (QE) program was not presented right away, but the system’s liquidity could still increase if economic conditions deteriorate. Thus, the precious metal has a solid ground in the long run.

Key support levels for options and futures are located in the $3,981–$3,986 and $4,005 areas, highlighting strong buying interest at lower prices. Open interest in options suggests that traders expect quotes to surpass current thresholds in the long haul.

Bullish sentiment prevails in the gold market. Investors remain cautious but optimistic about the precious metal’s outlook. Since the Fed's December meeting, their attention has gradually shifted to the upcoming release of US economic data, which could support or refute the case for further monetary easing.

If bullion prices break through $4,370 and consolidate above this level, the path toward $4,600 will open.

The overall recommendation is to buy gold from $4,370. Profits should be taken at $4,600. Stop Loss could be set at $4,100.

The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.