Gold Holds Near Six-Week High as Dovish Fed Outlook Weakens the USD

Fundamental Overview

Gold (XAU/USD) extended its advance on Monday, trading near its highest level since October 21. Growing expectations of another Federal Reserve rate cut—supported by recent dovish remarks from policymakers—have pushed the US Dollar to a two-week low, lifting demand for the non-yielding metal.

A cautious risk environment and elevated geopolitical tensions around the Russia-Ukraine conflict are adding to safe-haven flows. However, upside momentum remains measured, as traders await key US economic releases this week, beginning with today’s ISM Manufacturing PMI. This uncertainty encourages caution before chasing further intraday gains.

Gold Technical Analysis – Daily Chart

Technical Overview

• Gold is trading within an upward channel.
• Price remains above all major SMAs.
• RSI: Bullish zone
• Stochastic: Positive trend
• Immediate Resistance: 4320.00
• Immediate Support: 4195.65

How to Trade Gold

Gold rallied strongly before pulling back and finding renewed buying interest at key support. The metal has now broken above a major resistance level. If Gold sustains above this breakout zone, the bullish trend may extend toward the next resistance region.

Trade Suggestion:
Limit Buy: 4221.00
Take Profit: 4295.00
Stop Loss: 4187.09

Disclaimer

This report is intended for informational and educational purposes only and does not constitute financial advice. Trading commodities and forex carries significant risk and may not be suitable for all investors. Always conduct independent analysis or consult a licensed financial professional before making trading decisions.