🟡 Gold Price Extends Rally as Dollar Weakens
Gold (XAU/USD) continues to advance for the third consecutive session, with bulls pushing hard against the $4,150 resistance zone on Tuesday. A softer US Dollar and improving market risk sentiment are supporting the upward move in precious metals.
At the time of writing, gold trades near $4,145, holding firm above the previous breakout level of $4,050, as traders await confirmation of a government funding resolution in the United States.
💵 US Dollar Slips as Government Shutdown Nears Resolution
The US Dollar Index (DXY) fell after reports confirmed that the US Senate reached a deal to end the nation’s longest-ever government shutdown. The bill now heads to the House of Representatives and is expected to pass swiftly before being signed by President Donald Trump, possibly by Wednesday.
This development has weakened demand for the safe-haven Dollar, providing further support to gold prices as investors position themselves for a potential resumption of government spending and improved economic data flow.
📈 Technical Analysis: XAU/USD Faces Key Resistance at $4,150
Gold’s latest move marks a technical breakout from the two-week trading range between $4,000 and $4,050, signaling renewed bullish momentum.
- Resistance Levels:
- Immediate: $4,150 (October 22–24 highs)
- Next target: $4,220 (October 20 support-turned-resistance)
- All-time high zone: $4,380 (October 20–21 highs)
- Support Levels:
- Initial: $4,050 (former resistance, now short-term support)
- Secondary: $3,990–$4,000 (November 6–7 lows)
- Key: $3,880 (October 28 low)
Technical indicators remain bullish:
- The RSI (Relative Strength Index) has retreated slightly from overbought conditions, allowing room for further upside.
- The MACD (Moving Average Convergence Divergence) continues to trend above the signal line, confirming sustained buying pressure.
A confirmed daily close above $4,150 could pave the way for a rally toward $4,220 and potentially $4,380, setting up a retest of record highs.
🧠Market Sentiment: Gold Remains Supported by Risk-on Mood
The easing of fiscal uncertainty in Washington, combined with declining Treasury yields and a weaker Greenback, has strengthened the bullish case for gold. Traders are also betting that Federal Reserve rate cuts in December could further fuel demand for non-yielding assets like gold.
If the US government funding bill passes as expected, investor attention will shift back to macroeconomic data and inflation indicators, which will guide gold’s next major move.
📊 Gold Outlook Summary
| Factor | Impact on Gold |
|---|---|
| US Dollar Weakness | Bullish |
| Government Shutdown Resolution | Bullish |
| Technical Breakout above $4,050 | Bullish |
| RSI Near Overbought | Neutral |
| Resistance at $4,150 | Caution |
📌 Key Takeaways
- Gold trades near $4,150, testing a major resistance area.
- US Dollar weakens as US Senate reaches a deal to end shutdown.
- Bullish momentum supported by technical breakout and improving sentiment.
- Targets ahead: $4,220 and $4,380 if resistance is cleared.
- Supports: $4,050, $4,000, and $3,880.
About The Author
