Gold prices have pulled back slightly after reaching new all-time highs earlier in the day. While the overall trend remains bullish, the Relative Strength Index (RSI) suggests that the market may be overbought, increasing the risk of a short-term correction.

Fed Rate Cut Expectations

The expectation of a larger-than-expected rate cut by the Federal Reserve (Fed) at its upcoming meeting has increased significantly, supported by media reports and comments from former New York Fed President William Dudley.

Central Bank Meetings

The week ahead will feature several central bank meetings, including the Fed, Bank of England (BoE), Bank of Japan (BoJ), and central banks in Brazil, Indonesia, Norway, Turkey, and South Africa. The general consensus regarding global inflation and rate cuts could provide further momentum for gold.

Technical Analysis

Gold prices have peaked and plateaued in the $2,580s. While the long-term trend remains bullish, the RSI indicates that the market may be overbought. If the RSI exits the overbought zone, it could signal a potential correction.