Gold surged nearly 0.90 percent on Friday, trading at $4,386 as weaker US economic data triggered a broad-based dollar selloff. The rally comes after a week of softer inflation readings that significantly reduced market expectations for Federal Reserve interest rate hikes, boosting the non-yielding precious metal’s appeal.
The XAU/USD pair climbed toward the $4,400 psychological resistance level but failed to breach it by session close. Traders are reassessing Fed policy trajectory following the inflation data, which suggests cooling price pressures may allow the central bank to pause its tightening cycle. The weakening dollar made gold cheaper for holders of other currencies, amplifying buying pressure across commodities markets.
Market participants including forex traders, commodity brokers, and institutional investors are closely monitoring whether gold can sustain momentum above the $4,400 mark, which would likely trigger additional technical buying.
FXnCO Insight
Position for continued gold strength if dollar weakness persists, but watch $4,400 resistance as a critical breakout level for extended upside potential.
Source: FXStreet