Gold continues its strong rally, reaching uncharted levels as it nears the $2600 mark.

Gold continued its upward trend on Friday, reaching new all-time highs and leading the market for the second consecutive day. It is set for a weekly gain of around 3.3%.

The latest surge was driven by the near certainty of a Fed rate cut next week, with rising expectations for a more aggressive 50 basis point reduction, boosting bullish sentiment further.

Strong technical indicators align with these favorable fundamentals, bringing the psychological $2600 level into focus.

However, some price easing could occur due to profit-taking, as traders often close positions at the week’s end. Overbought conditions on daily and weekly charts also support this potential pullback.

Any dips are expected to be shallow, as the price has gained strong momentum, and near-term sentiment remains bullish, offering better re-entry levels into the market.

The session low at $2556 provides initial support, with the former consolidation ceiling at $2531 acting as a solid barrier, likely containing any dips and protecting lower pivots at $2500/$2480.

A weekly close above $2531 would confirm the continuation of the broader uptrend.

Res: 2591; 2600; 2614; 2628
Sup: 2556; 2531; 2528; 2517