XAU/USD outlook: Gold surges to new all-time high above $2,600
|XAU/USD
Gold broke through psychological $2600 barrier and hit new all-time high on Friday morning, on track to register clear break higher after the resistance was cracked in post-Fed jump but resisted attack.
The yellow metal shined after market digested Fed’s decision, with prospects for more rate cuts, deteriorating geopolitical situation, growing uncertainty over fiscal conditions in a number of Western economies and ongoing destabilization of the US dollar, boosting its safe haven appeal.
Fresh bull-leg $2546 (low of a shallow correction) signals continuation of larger uptrend, with close above $2600 to confirm signal.
Gold is also on track for the second consecutive weekly gain, which came after a triple weekly Doji candles, adding to bullish continuation signals.
Gold price has moved at a high speed and rose from $2000 (which marked very strong resistance) to $2600 in about ten months.
The sentiment is very bullish and sustained break above $2600 would look for targets at $2628 and $2650 (Fibo projections) initially, with stronger bullish acceleration to bring in focus $2700.
Dips on partial profit taking should be shallow and mark positioning for further advance.
Res: 2614; 2628; 2636; 2650.
Sup: 2600; 2589; 2581; 2557.
Interested in XAU/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.