Gold prices continued their upward momentum on Wednesday, marking a fifth consecutive day of gains and breaking decisively above the key $4,200 level. At the time of writing, spot gold (XAU/USD) is trading around $4,193, after hitting a fresh all-time high of $4,218 earlier in the session.
The precious metal is benefiting from renewed weakness in the US Dollar following dovish remarks from Federal Reserve Chair Jerome Powell during his speech in Philadelphia. Powell noted that the deterioration in the labour market has become a greater concern than inflation, effectively signalling that a rate cut in October is now almost certain — with markets increasingly pricing in the likelihood of another cut in December.
Technical Analysis: Bullish Trend Still Dominant
Gold’s technical outlook remains firmly bullish, with no immediate signs of a trend reversal. The metal has surged by an astonishing 27% in under two months, a pace that would typically invite some corrective pressure. The 4-hour RSI continues to flash overbought readings, yet downside moves remain shallow and short-lived.
On the upside, traders are eyeing the next potential resistance zones at the 172.2% Fibonacci extension of $4,235, followed by the 161.8% extension near $4,300.
In contrast, support levels are currently seen around the previous all-time high near $4,170, followed by $4,090 (Tuesday’s low) and the $4,050 area, which coincides with the highs from October 8–9.
With strong momentum, dovish Fed expectations, and a weakening dollar, gold’s bull run shows little sign of cooling — but traders should remain alert for short-term pullbacks after such a powerful rally.
