Gold advances further on Powell’s dovish comments

Gold prices rose further in early Tuesday trading following dovish comments from Fed Chair Powell in his Monday speech. This has heightened expectations that the Fed may soon decide to start cutting interest rates.

Powell highlighted recent inflation data, which boosts optimism that inflation is on track toward the 2% target, fueling hopes for eventual policy easing.

Markets are now focusing on the release of US retail sales data, due later today (forecast for June: -0.3% vs. May: 0.1%). Numbers meeting or falling below expectations could further support the rate cut narrative and boost gold prices.

The fresh rise brought gold closer to the new record high of $2450. However, resistance at this level and overbought daily studies could create headwinds. Limited dips, expected within the still-positive environment for gold, may offer better opportunities to re-enter the bullish market.

A firm break above the $2450 pivot would target $2500 initially, with stronger acceleration anticipated beyond that level.

The rising 10-day moving average (currently at $2388) should provide support and maintain the broader bullish trend.

Res: 2450; 2500; 2515; 2551
Sup: 2420; 2400; 2388; 2366