Gold Rallies Over 3% on Broad-Based Dollar Weakness

Gold prices surged more than 3% on Wednesday, fueled by a sharp decline in the U.S. dollar amid growing expectations that the Federal Reserve will maintain a dovish monetary policy stance.

The latest advance marks a renewed attempt to break above the eight-day consolidation range, supported by a floor at $4,310 and reinforced by the daily Ichimoku cloud base near $4,358. Prices have repeatedly tested resistance around the $4,440 area, although several rallies failed to secure a daily close above the key Fibonacci barrier at $4,416, representing the 50% retracement of the decline from $4,889 to $3,942.

A sustained move above these levels would strengthen the bullish outlook and open the way toward immediate targets at $4,509, where the 200-day moving average stands, followed by $4,527, the 61.8% Fibonacci retracement level. A stronger acceleration could then shift focus to $4,600 and the 76.4% retracement target at $4,666.

Technical indicators continue to improve, supported by multiple bullish moving-average crossovers, firm upward momentum, and a thick daily Ichimoku cloud that provides a solid foundation for the prevailing uptrend.

Meanwhile, former resistance levels at $4,416 and $4,440 have now turned into important support zones. Holding above these barriers would help preserve the positive market structure and keep the door open for further gains.

Res: 4509; 4527; 4600; 4666
Sup: 4440; 4416; 4371; 4330