XAU/USD outlook: Gold hits new multi-week high on Fed rate cut expectations/weaker Dollar
|Gold
Gold continues to trend higher and hit the highest in six weeks on Monday, supported by growing expectations for Fed rate cut in December.
Weak US economic data and recent dovish comments from Fed policymakers fueled fresh rise in bets for further policy easing, while market participants also expect successor of Fed Chair Jerome Powell to hold more dovish stance.
Such environment contributed to further weakening of US Dollar that boosts demand for yellow metal.
Fresh gains broke through previous high ($4245, close above which to confirm bullish signal) and cracked Fibo barrier at $4264 (76.4% retracement of $4381/$3886 correction), where bulls may face stronger resistance as stochastic is overbought and positive momentum faded on daily chart.
However, consolidation is likely to be narrow (overall picture is bullish and sentiment is positive) with $4200 zone (psychological / broken Fibo 61.8%) marking solid support which should keep the downside protected.
Firm break of $4264 Fibo barrier to strengthen near-term structure for test of $4300, the last significant obstacle en-route to $4381, new record high.
Res: 4264; 4300; 4339; 4368.
Sup: 4200; 4173; 4134; 4100.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.