Gold extends its strong momentum and sets sights on another test of its record high

Gold climbed to its highest level in nearly two months on Friday after decisively breaking above the recent range ceiling at $4264, reaffirming the continuation of the recovery leg from the $3886 low of Oct 28 and pushing through the psychological $4300 barrier.

The metal strengthened as sentiment improved, with markets leaning toward expectations of additional Fed rate cuts next year despite the central bank’s cautious tone and lingering uncertainty around elevated inflation.

The move above $4300, the final major hurdle before the $4381 record high, confirmed a strong bullish signal and opened the path for further gains.

Bullish daily studies reinforce this outlook, although some headwinds are likely as prices approach the key $4381 resistance, particularly amid overbought conditions and typical end-week profit-taking.

The broken $4300 level has now turned into a firm support zone, with any deeper pullbacks expected to hold above the former pivotal barrier at $4264 to preserve the bullish structure and provide more attractive re-entry levels.

Meanwhile, markets are also watching today’s EU government meeting, which may consider shifting decision-making from unanimous consent to simple majority voting in order to approve an indefinite freeze of Russian central bank assets held in Europe (mainly in Belgium).

Such a move would set a significant precedent with potentially broad economic repercussions—Belgian authorities and the European Central Bank have already opposed the proposal—and could trigger a strong wave of safe-haven demand, with gold positioned to benefit the most.

Res: 4346; 4381; 4400; 4450
Sup: 4320; 4300; 4264; 4250