Gold trades firmly near a two-week high as rising expectations of a December Fed rate cut push the US Dollar lower. Softer US PPI data and dovish Fed commentary continue to support the bullish tone, though broader risk appetite and hopes of a Russia-Ukraine peace deal may limit upside momentum.
Entry Zone: Buy dips toward $4,135 – $4,150
Stop Loss: Below $4,108
Targets: $4,208, then $4,248 if bullish continuation persists
Catalyst Watch: Fed rate-cut expectations, Russia-Ukraine peace rhetoric, global risk tone, US data flow
Trading Rationale
Gold regains its upward trajectory as markets lean more dovish on the Fed:
- US PPI data signaled cooling inflation, reinforcing expectations of a December rate cut.
- Several Fed officials supported further easing, dragging the USD to a one-week low.
- Lower interest-rate expectations reduce the opportunity cost of holding gold, keeping buyers active.
- A generally positive global equity tone limits extreme safe-haven demand, but does not reverse the broader bullish structure.
Technically, XAU/USD has reclaimed the H4 moving average and is attempting to break through upper resistance zones. Any pullback into the mid-$4,100s is likely to attract renewed buying interest.
Key Technical Zones
Current Price: 4,159.89
Resistance Levels: 4,207.85 / 4,243.84
Support Levels: 4,108.89 / 4,074.71
DISCLAIMER
DISCLAIMER: Trading gold, forex, and CFDs involves significant risk. This analysis is educational only and not financial advice. Always trade responsibly.