XAU/USD climbs nearly $200 this week on softer US Treasury yields and reduced expectations for near-term Fed rate hikes.
Gold prices extended gains to $4,270, supported by declining US Treasury yields as traders scaled back bets on immediate Federal Reserve rate hikes. The metal pulled back slightly from Thursday’s high of $4,300 but remains on track to test mid-June peaks near $4,380.
Earlier this week, gold broke above a descending triangle pattern, signaling a potential bullish reversal. Momentum indicators show overbought conditions, with the Relative Strength Index at 77, though dips are expected to attract buyers. Resistance levels stand at $4,300 and $4,380, with further upside targeting $4,500.
Analysts noted increased speculation about political influence on the Fed, citing reports of repeated communications between President Trump and Fed Chair Warsh. This perception may weigh on the US Dollar, further supporting gold’s rally.