Gold holds uptrend as Dollar weakens and Fed signals more cuts

Gold (XAUUSD) continues to strengthen, supported by a softer Dollar and growing bets on rate cuts. The Federal Reserve’s recent policy shift and Powell’s dovish tone have boosted demand for gold. Political signals and a softening labor outlook have added further pressure on the Dollar. At the same time, gold continues to benefit from safe-haven flows and bullish technical momentum. With major economic data and global central bank meetings ahead, the metal remains well-positioned for further gains.

Gold rises on growing Fed easing bets and Dollar weakness

Gold remains supported by persistent weakness in the US Dollar. The Dollar index continues to decline as markets anticipate a more accommodative stance from the Federal Reserve. Last week, the Fed delivered a 25 basis point rate cut. Powell’s remarks about labor market risks have since shifted expectations toward two additional cuts in 2025. This dovish outlook continues to drive demand for gold as a safe-haven asset in a low-rate environment.

Markets now await the delayed releases of Nonfarm Payrolls, Retail Sales, and PMI data. The reports will serve as a key indicator for the broader economic outlook. Inflation figures are due Thursday, alongside policy decisions from the European Central Bank and Bank of England. On Friday, the Bank of Japan will deliver its policy update. These events could reshape interest rate expectations and play a critical role in determining gold’s next move.

Moreover, political developments are shaping market sentiment. In recent remarks, Trump suggested appointing a dovish Fed chair in 2026 with a clear preference for easing. This expectation has added further downside pressure on the US Dollar. It also highlights the broader shift toward hard assets, including gold. The metal’s continued strength above $4,300 highlights bullish positioning and suggests further upside potential.

Gold coils within triangle formation as bulls build momentum

The gold chart below shows a well-formed ascending triangle, a bullish continuation pattern. Price action consistently formed higher lows while encountering resistance near the $4,380 level. This consolidation phase helped build bullish momentum within a well-defined structure. In recent weeks, price movements remained close to the rising trendline, reflecting steady buying interest on pullbacks.

Currently, gold is trading above the midrange resistance within the triangle, suggesting early signs of a potential breakout. The recent candle was wide and bullish, backed by firm volume. This price action points to the start of a new upward leg and aligns with the broader uptrend. The ascending triangle formation continues to offer technical support to the ongoing bullish narrative.

Additionally, the pattern points to further upside potential. The measured move suggests a possible extension above the $4,400 level. Momentum remains strong, and the well-defined setup supports a sustainable move higher. Meanwhile, price action continues to hold above key support levels, with recent consolidation forming a stable base. Both technical and fundamental factors now align in favor of continued gains.

Gold outlook: Strong technical setup and Fed shift support further gains

Gold continues to trade with strong upward momentum, supported by dovish policy expectations, political tailwinds, and a weakening US Dollar. Upcoming macro data and central bank decisions may shape the next leg, but the current backdrop remains favorable. Technically, gold holds above key support within a bullish triangle pattern, with price action pointing to further gains above $4,400.