GOLD – modest pullback from the new record high sets the stage for a final push toward the $2700 target

Gold prices eased on Friday after hitting a new record high on Thursday, with end-of-week profit-taking driving the pullback. So far, the dip has been shallow, with a stronger decline unlikely as the market consolidates and positions for another upward push.

The overall sentiment remains firmly bullish, fueled by rising expectations for further rate cuts from major central banks and escalating geopolitical tensions, which continue to drive investors towards safe-haven assets.

The recent rally is approaching the initial target at $2700, where bulls may encounter resistance. However, the bullish structure is likely to stay intact, supported by strong fundamentals.

Daily charts show overbought conditions, suggesting a potential correction, but initial supports at $2655 (Thursday’s low/5DMA) and $2650 (100HMA) remain unbroken. The rising, thick hourly Ichimoku cloud ($2660/$2646) also provides strong support and should limit deeper dips.

Ideally, any pullbacks should be contained above $2620 (rising 10DMA) to keep the bullish trend intact and safeguard the key $2600 support level (Fibo 38.2% of the $2471/$2685 rally/psychological level). A break below this zone would increase the risk of a deeper correction.

Gold is on track for a third consecutive weekly gain, reinforcing the bullish outlook, although technical selling due to overbought weekly indicators should not be overlooked.

Res: 2675; 2685; 2700; 2714
Sup: 2655; 2650; 2635; 2620