Gold prices are treading water Friday, holding steady just below the $4,600 mark after failing to sustain momentum from earlier weekly highs near $4,700. The precious metal has now traded sideways for two consecutive sessions as markets await critical commentary from Federal Reserve Chair Kevin Warsh, whose speech is expected to provide fresh direction for the yellow metal.
XAU/USD hit three-month peaks earlier this week before encountering resistance at the psychologically significant $4,700 level. The pullback has stabilized at a former resistance zone now acting as support around $4,600, suggesting traders are reluctant to commit to directional bets ahead of Warsh’s remarks.
The consolidation pattern reflects broader market uncertainty as investors position for potential monetary policy signals that could impact the dollar and Treasury yields, both key drivers of gold’s trajectory. Forex traders and precious metals desks are maintaining tight ranges as volatility remains compressed.
FXnCO Insight
Gold traders should monitor Warsh’s speech closely for any hawkish or dovish signals that could trigger a breakout above $4,700 resistance or breakdown below $4,600 support.
Source: FXStreet