GOLD Extends Weekly Rally on Fed's Dovish Pivot, Eyes $2060

Gold Extends Weekly Rally on Fed's Dovish Pivot, Eyes $2060 Target

Gold prices continue their upward trajectory during Friday's early European session, set to conclude the week with a 2% rally. This positive momentum is largely fueled by the Federal Reserve's (Fed) recent dovish pivot, resulting in a notable decline in the US Dollar (USD).

Despite Thursday's positive data from the US labor market and increased retail sales, the Dollar's resilience is being tested. Investors maintain confidence in the belief that the Fed will be the first major central bank to initiate a monetary policy easing, thereby keeping US Dollar bulls on the sidelines.

From a technical standpoint, gold's price has successfully breached the $2040 resistance level, signaling a potential continuation of the bullish impulse following a previous retracement. The target of $2060 is in sight as the precious metal maintains its positive bias in response to evolving market dynamics.

Investors and traders are encouraged to monitor the ongoing developments in the Fed's stance and broader market sentiment, as gold positions itself for further gains amid the dovish outlook for the US Dollar.


Our preference

Long positions above 2016.70 with targets at 2060.00 & 2070.00 in extension.