Gold had a major breakout and is now testing the trendline that originates from the 2011 top. After the hot PCE data, the surge comes as a surprise, especially ahead of Powell’s testimony and the key payrolls data. Later this month, the FOMC will update its forecasts and probably will hint about the future rate cut path and a possible slowdown of QT.
(XAUUSD Weekly Chart)
The major trendline’s current level is at 2140. The trendline has captured all of the 2011, 2020, and 2023 tops and is now being tested once more. In case of a breakout, 2182 – 2200 and 2315 might become the possible targets for gold. However, a hawkish FED and strong jobs data might slow gold’s momentum.
The 2050-2075 zone was a major resistance and held back gold advances for four years. It is highly likely that this zone will now work as a support. If gold retreats, this zone must be breached first. After that, 2013 and 2000 are the supports to follow.
