Gold Looks Bullish: technical and fundamentalHi Guys!
Gold is starting to flash major bullish signals, and this time, it’s not just about the chart. The technical setup is clean, but we’re also seeing fundamental tailwinds that could fuel a bigger move.
Let’s break it down
1. Technical Setup: The QML Reversal Is In Play
On the 1H chart, Gold is showing a textbook Quasimodo (QML) reversal pattern. Price made a lower low, then reversed up to break structure, and now it’s pulling back and respecting the key QML zone around $3,296.
This zone has turned into strong support. As long as we stay above it, the structure suggests a continuation toward $3,367 — a clean upside liquidity target and the previous high.
Strategy: Look for pullbacks into $3,296 for potential long entries with targets around $3,367 or higher.
2. Fundamental Tailwinds: Why Gold Is Gaining Strength
The fundamentals are stacking up in Gold’s favor right now. Here’s what’s fueling the move:
- Weakening USD & Rate Cut Expectations
With the Fed increasingly signaling rate cuts by late 2025, the US dollar is losing steam. Lower interest rates reduce the opportunity cost of holding non-yielding assets like Gold, making it more attractive to investors. Traders are already pricing this in.
- Softening Economic Data
Recent U.S. data, including weaker-than-expected job growth and declining manufacturing numbers, points to a slowing economy. That puts more pressure on the Fed to pivot dovish, which historically sends Gold higher.
- Central Bank Demand
Global central banks (especially in Asia) continue to accumulate physical Gold as part of their long-term reserve strategy. That institutional demand provides strong support at lower levels.
Technical + Fundamental = Strong Bullish Bias
We’re seeing a solid confluence here:
Chart says long (QML + bullish structure)
Macro says long (dovish Fed + weaker dollar + safe haven demand)
Drop your thought here!
