As expectations ease, gold finds support from declining yields and falling real interest rates. Waller’s remarks triggered a dip in Treasury yields, reinforcing gold’s appeal.
However, rumours about Trump’s stance on Fed Chair Powell and concerns over tariffs continue to keep markets volatile. Retail sales increased largely due to price increases, rather than volume growth, suggesting that inflation pressures persist. However, the falling bond yields and dovish Fed signals point to strong support for gold prices this week.
Gold Technical Analysis
XAUUSD Daily Chart – Consolidation Before Next Big Move
The daily chart for spot gold shows that the price is consolidating near the edge of an ascending triangle pattern. This consolidation is creating price compression, increasing the likelihood of an upside breakout. A break above the $3,450 area would trigger a strong surge in gold prices. Conversely, a break below $3,250 would suggest further downside. Additionally, the RSI is holding above the mid-level, indicating continued upside potential for gold.