Gold Price Faces Crucial Test as Fed Expectations Shift

The gold price is approaching a critical technical test after rallying by 6.3% over the past month, reaching $4,381 an ounce on Thursday.

This move has been driven by fading expectations of further Federal Reserve tightening following weaker U.S. labor market data, said Renee Friedman, global head of research at Exante.

The 200-day moving average is a closely watched level for gold investors, currently sitting at $4,484 an ounce.

A sustained break above this level could reinforce the bullish case for gold, with continued central bank buying and geopolitical uncertainty supporting safe-haven demand for the precious metal.