Quick overview
- Gold (XAU) has rallied for consecutive days, approaching a two-week high and targeting $4,200 per troy ounce.
- The latest Non-Farm Payrolls report was weaker than expected, leading traders to believe the Federal Reserve may delay interest rate hikes.
- The US Dollar Index has fallen to a two-week low, making gold cheaper for international buyers and contributing to its price surge.
- Immediate resistance is noted at $4,200, with support at $4,120, as traders monitor for signs of exhaustion or profit-taking.
Gold (XAU) has broken out, rallying for consecutive days and flirting with a two-week high as it targets the $4,200 per troy ounce mark. The latest Non-Farm Payrolls (NFP) report came in weaker than expected. Fed Rate Bets Cool Down: Traders are betting that the Federal Reserve will delay or scale back planned interest rate hikes for 2026 because the labor market is showing signs of cooling
Higher interest rates usually strengthen the Dollar. With those rate hike expectations pulling back, the US Dollar Index has stumbled to a two-week low. A weaker greenback makes gold cheaper for international buyers because gold is priced in dollars, sending prices surging
Immediate Resistance ($4,200 – $4,215): A clean daily close above $4,200 opens the door to the June 22 high of $4,215.54.: If the dollar weakness persists, the next major hurdle sits at the Fibonacci 38.2% retracement level near $4,288.90.
Downside Support ($4,120): On any short-term profit-taking, the previous resistance-turned-support near $4,121 needs to hold to keep this bullish momentum intact.
Traders looking to short or take profits are watching for signs of exhaustion at this wall. Gold has moved up fast over the last few days. If the US Dollar finds a sudden jog or if profit-taking triggers near $4,200, the price could easily reject the level.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.