Gold extends rally as dollar weakness drives prices past key resistance, marking the largest single-day gain in two weeks.
Gold prices climbed 1.5% to a two-week high on Wednesday, breaking above a critical resistance trendline as the US dollar retreated. The move reflects broader market repositioning amid shifting expectations for Federal Reserve policy and geopolitical uncertainty.
Prior to the rally, XAU/USD had traded in a tight range for over a week, struggling to sustain gains above $2,350. The latest surge follows softer-than-expected US economic data, which weighed on the dollar and lifted demand for non-yielding assets.
Markets are now pricing in a higher probability of a Fed rate cut later this year, further supporting gold’s upward momentum.