Key Points
- Gold steadied at $3,756/oz, just shy of this week’s record high.
- Prices have risen 1.8% so far this week, supported by Fed cut expectations.
- Reports suggest China may expand its role as custodian of foreign sovereign gold reserves.
Gold continues to trade with a firm tone, consolidating near record territory as investors weigh the Federal Reserve’s easing path against persistent global risks.
Demand for bullion remains strong, with the metal gaining nearly 2% this week amid expectations of back-to-back Fed cuts in the coming months.
The focus now shifts to US PCE inflation data on Friday, alongside scheduled remarks from Fed officials.
A softer inflation print would reinforce market expectations for a deeper easing cycle, while hawkish commentary could temper recent momentum.
Adding to the bullish narrative, reports from Bloomberg highlight China’s push to expand its role in the global bullion market by offering custody of foreign sovereign reserves.
Such a move could further underpin structural demand for gold, strengthening its status as a reserve asset.
Technical Analysis
Gold (XAU/USD) continues its strong bullish run, now trading at $3756.65, up 0.54% on the day. The rally shows little sign of slowing as buyers push further into uncharted territory, building on the breakout from the $3600 region earlier this month.
The moving averages (5, 10, 30) remain in a firm bullish alignment, with short-term MAs sharply above the long-term line, confirming strong upward momentum.
The MACD histogram stays positive, while the lines are comfortably above the zero level, showing bullish dominance despite minor cooling signals.
Immediate resistance is now being tested around $3760–3780, with a potential extension toward $3800 if momentum continues.
On the downside, initial support lies near $3700, followed by $3600, the breakout zone that has now turned into a strong base for bulls.
Overall, sentiment on gold remains decisively bullish. However, after such a steep climb, some consolidation or profit-taking is possible.
As long as price action holds above $3600, the bullish structure is intact, and dips may continue to attract buyers.
Cautious Forecast
The balance of risks remains skewed to the upside. If Friday’s PCE data confirms a soft inflation outlook, gold could retest and potentially break above the $3,770 record high.
However, any hawkish pushback from Fed officials may trigger short-term profit-taking, with downside limited toward $3,600–3,650.
