- Gold price posts solid gains on Monday as dollar remains broadly softer after dovish Fed.
- Markets anticipate further easing that could lower the yields and benefit the gold.
- Investors are now eying delayed US NFP and CPI data, along with major central bank decisions to reposition.
Gold prices started the week on a firm footing, soaring toward the 7-week highs around $4,350 level during early European trading. The move reflects a shift in investor positioning as expectations for lower US interest rates next year continue to build. A softer dollar and falling Treasury yields have improved the appeal of non-yielding gold that typically benefits when borrowing costs decline.
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The Federal Reserve remains the central influence on price direction. Last week, the Fed delivered its third rate cut of the year, lowering the benchmark range to 3.50%–3.75%. While some policymakers warned that inflation risks have not fully eased, Chair Jerome Powell said the central bank is now comfortable waiting to see how economic conditions evolve. Markets have interpreted those remarks as a signal that policy will stay supportive if growth or employment weakens further. That expectation has kept pressure on the dollar, supporting gold extend its gains.
Meanwhile, ongoing geopolitical uncertainty around Russia-Ukraine conflict has encouraged investors to maintain defensive exposure, even as equity markets attempt to stabilize. This steady demand has limited selling interest during brief pullbacks and reinforced gold’s role as a hedge against macro and political risk.
Attention now turns to US economic data, which will shape near-term expectations for Fed policy. The delayed employment reports for October and November, including Nonfarm Payrolls, wages and the unemployment rate, will be closely watched. Softer labor data would support the view that the Fed may lean toward further easing next year, a scenario that would likely keep gold well supported. However, upbeat figures could revive the dollar and slow the metal’s advance.
Comments from Federal Reserve officials are also in focus. Any signals that policymakers remain concerned about inflation or are reluctant to cut rates further could create short-term volatility. At the same time, political uncertainty around future Fed leadership continues to weigh on the dollar, adding another layer of support for gold.
Beyond the US, central bank decisions in Europe, the UK and Japan later this week may influence broader risk sentiment. Overall, the outlook for gold remains constructive. Lower rate expectations, a weak dollar and persistent uncertainty continue to favor demand, keeping the metal supported as markets move through the final full trading week of the year.
Gold Technical Price Analysis: Looking for Fresh All-time Highs
The gold prices remain comfortable near the Friday’s highs around $4,350. The bullish pin bar shows a strong buying pressure supported by a bullish crossover of 20- and 50-period MAs. However, the RSI holds near the overbought zone, suggesting a potential consolidation before further upside.
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The immediate resistance for the metal appears at $4,353 ahead of all-time highs near $4,380 and then $4,400. On the flip side, immediate support appears at the round number around $4,300 ahead of swing low of $4,260 and then 50-period MA at $4,225.
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