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Gold prices (XAU/USD) ended the week higher after four consecutive weekly declines, driven by easing expectations of near-term Federal Reserve rate hikes. The rally came amid a light economic calendar, allowing technical factors to influence market sentiment. Traders are closely watching whether this rebound signals a potential reversal in the precious metal's recent downward trend.
The shift in Fed policy expectations is critical for gold, which typically benefits from lower real interest rates and serves as a hedge against inflation and currency weakness. With the US dollar under pressure from reduced tightening bets, gold's appeal to investors has increased. Market participants are now assessing whether this technical rebound can hold against potential macroeconomic risks.
For the coming week, attention will focus on any changes in the Fed's forward guidance and how gold interacts with key support/resistance levels. A sustained move above $2,030 could signal a bullish reversal, while a breakdown below $1,980 might reignite selling pressure. Traders should also monitor broader risk appetite indicators and geopolitical developments that could impact safe-haven demand.
