Gold Prices Soar to Fresh Weekly Highs Amid Weaker US Dollar
Gold prices have accelerated their recovery on Wednesday, driven by a softer US Dollar and lower Oil prices. The decline in Oil prices has eased concerns about inflation, while downbeat US macroeconomic data has cooled market expectations of Federal Reserve rate hikes. This has enticed Gold buyers to push the precious metal above the top of a triangle pattern at $4,125.
The price of XAU/USD is currently trading at $4,161, holding a constructive near-term bias after reaching one-week highs. Momentum indicators in 4-hour charts endorse the positive view, with the Relative Strength Index (14) around 55 hinting at a building bullish trend. However, bulls will have to clear the horizontal barrier around $4,220 to confirm a bullish reversal.
A bearish reaction is likely to find support at the $4,000 psychological level, although the key support area lies at the $3,945 area, the bottom of the triangle pattern. A confirmation below here would negate the bullish view and bring the late October 2025 lows into play.