Gold pushes to a new multi-week high as rising Fed rate-cut expectations and a softer dollar fuel fresh demand

Gold extended its upward trend on Monday, reaching a six-week high, driven by growing expectations of a Fed rate cut in December.

Weak US economic data, combined with recent dovish remarks from Fed policymakers, fueled renewed bets on further monetary easing, while markets anticipate that Jerome Powell’s potential successor may adopt an even more dovish stance.

This environment contributed to a softer US dollar, boosting demand for the yellow metal. Gold’s recent gains pushed above the previous high at $4245—where a close above would confirm a bullish signal—and challenged the Fibo barrier at $4264 (76.4% retracement of the $4381/$3886 correction). Bulls may encounter stronger resistance here, as the stochastic shows overbought conditions and daily positive momentum has faded.

Despite this, consolidation is expected to remain narrow, as the overall technical picture and market sentiment remain bullish. The $4200 zone (psychological level / broken Fibo 61.8%) offers solid support to protect the downside.

A decisive break above the $4264 Fibo barrier would reinforce the near-term bullish structure and pave the way for a test of $4300, the final significant hurdle before targeting the $4381 record high.

Res: 4264; 4300; 4339; 4368
Sup: 4200; 4173; 4134; 4100