Gold continues to trade with strength this week, holding comfortably above the key US$4,150 level as investor sentiment shifts further towards the expectation of a December Federal Reserve rate cut. With US Treasury yields pulling back and the US Dollar losing momentum, the environment remains highly supportive for bullion.
Fresh US data released on Wednesday added to this bullish backdrop. Retail sales came in weaker than expected, producer prices were steady, and consumer confidence slipped, reinforcing the view that the Federal Reserve may move ahead with another 25-basis-point cut next month. Markets have quickly priced in these expectations—lifting gold and other yieldless assets.
Technical Outlook: Momentum Builds Toward US$4,210
Gold’s technical setup remains constructive. XAU/USD is consolidating above former resistance at US$4,150, now acting as solid support. The bulls have reasserted control following the bounce from the 78.2% Fibonacci retracement near US$4,000, which marked the end of November’s corrective pullback.
The 4-hour RSI is sitting comfortably above 60, signalling ongoing bullish momentum.
MACD remains firmly positive with rising histogram bars—another sign that upward pressure is building.
A clean move above US$4,100 earlier in the week confirmed that the pullback has likely run its course.
With momentum on their side, traders are now eyeing a retest of the November 14 high at US$4,210. A break above this level could open the path to retesting the November peak.
Key Levels to Watch
Upside Targets:
US$4,210 – Immediate resistance and the next bullish milestone
Beyond this, traders will watch for a run toward the mid-November highs
Support Levels:
US$4,150 – Holding well through European trade
US$4,100 – Tuesday’s low
US$4,025–US$4,040 – Lows from 21–24 November
US$4,000 – Major support at the Fibonacci level
