$4,600: Gold rallies to three-month high, eyes third weekly gain
Gold (XAU/USD) is heading for a third consecutive weekly gain on Friday, extending an impressive rally that has lifted the precious metal by around 13% so far this month. At the time of writing, XAU/USD trades near $4,590 after briefly climbing above $4,600, its highest level since May 15.
Gold prices have surged to a three-month high of $4,590, with the precious metal potentially setting a third consecutive weekly gain. This impressive rally has lifted XAU/USD by around 13% this month, driven by heightened macroeconomic uncertainty and a search for safety in Gold. The US Treasury’s surprise decision to double its liquidity-support buybacks to $4 billion per operation has contributed significantly to the rally.
Despite concerns over rising US government debt, large budget deficits, and persistent inflation, Gold's appeal as a store of value and a hedge against inflation and currency depreciation remains strong. Central banks, particularly China, are also boosting their Gold holdings, adding further demand. However, Gold faces challenges such as elevated Treasury yields and energy-driven inflation, which could keep inflation above the Fed's 2% target and pressure the central bank to raise interest rates.
Technical indicators suggest a bullish bias, with the price holding above key moving averages and showing strong momentum. The immediate resistance level is around $4,600, with support at $4,514, $4,379, and $4,172.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
