Gold holds steady above $2000 as weekend approaches
Gold holds steady above $2,000 after last week’s dovish signals from the U.S.
Gold prices surged past $2000 in response to dovish signals from the Federal Reserve. The central bank's decision to pause interest rate hikes and consider cuts in 2024 impacted the dollar and Treasury yields, with expectations of at least three rate cuts, starting in March 2024.
Post the Fed's announcement, the dollar hit a four-month low, and the 10-year Treasury yield fell below 4%, favouring gold. As of 10:25 GMT this morning, spot gold was at $2,040.74.
On a technical level, gold bounced from its 50-day moving average. The next resistance is around $2073.96. If it surpasses this point, there's minimal resistance until the all-time high of $2135. The delicate balance between interest rates and risk appetite will influence gold's future direction.
