Gold (XAU/USD) continues its relentless rally, posting fresh all-time highs for the second consecutive day and pushing toward the $4,500 psychological level during Asian trading.
📈 What’s driving Gold higher?
🔹 Dovish Fed expectations:
Markets are increasingly pricing in at least two more Fed rate cuts, pressuring the US Dollar and boosting demand for non-yielding assets like Gold.
🔹 Fed credibility concerns:
Comments from US Treasury Secretary Scott Bessent about revisiting the Fed’s inflation framework — including scrapping the dot plot — have added uncertainty around long-term monetary policy.
🔹 Geopolitical risks rising:
• US action against Venezuelan oil shipments
• Escalation risks in the Russia-Ukraine war
• Ongoing Middle East tensions and Iran-Israel risks
All continue to reinforce Gold’s safe-haven appeal.
📊 Technical Snapshot
• Breakout above $4,380 confirmed bullish continuation
• Price firmly above the 50-day SMA (~$4,160)
• MACD remains positive, signaling strong momentum
• RSI at 81 → Overbought conditions suggest possible short-term consolidation
🔍 Outlook
Despite overbought signals, the broader trend remains decisively bullish. Any near-term pullbacks are likely to be corrective rather than trend-reversing, with dips attracting fresh buying interest.
📅 Traders now eye US Q3 GDP, Durable Goods Orders, and FOMC commentary for short-term volatility, especially amid thin year-end liquidity.
Bottom Line:
As long as price holds above key support, Gold’s path of least resistance remains upward.
