Gold Weekly Forecast: Bulls Show Interest as Fed Cut Odds Grow
Gold gained over 2% last week as growing expectations for a December Federal Reserve rate cut boosted bullish sentiment.Summary
Gold (XAU/USD) saw a weekly gain of over 2% early in the week, driven by strengthening market expectations for a 25-basis-point Federal Reserve rate cut in December. This optimism was fueled by dovish comments from Fed officials like Governor Stephen Miran and New York Fed President John Williams, despite mixed US economic data releases, including jobless claims and durable goods orders.
With the Fed's blackout period beginning, investor focus shifts entirely to upcoming US economic indicators to gauge the likelihood of a rate cut, which the CME FedWatch Tool currently prices at about 85% for December. Key data points for the coming week include the ISM Manufacturing PMI, ISM Services PMI, and the Challenger Job Cuts report, which will influence the US dollar and, consequently, gold prices.
Technically, the short-term outlook for gold remains constructive, trading above the 20-day Simple Moving Average and the $4,125 Fibonacci retracement level. Key support levels are identified at $4,125, $4,085, and $4,030, while resistance lies at $4,245, $4,300, and $4,380.
(Source：BeInCrypto)