Gold hit a record high of $2,451 in mid-July, driven by expectations of the US Federal Reserve's loose monetary policy in the final quarter. However, statements from Fed members last week caused gold to retreat from its peak.
In the past three days, gold has dipped below $2,400 but began the week with a decelerated decline due to uncertainty following President Biden's recent actions. Early in the week, investors flocked to gold, helping it stay resilient near the critical support level.
The market narrative is still dominated by the US presidency and the Fed's interest rate policies. In the foreseeable future, gold prices should be supported by these trends. Gold may continue to rise this week as long as it stays above the $2,390 support level.
Watch Out for Resistance Levels:
$2,420 is the initial point of resistance. The next resistance level, if gold rises above it, is $2,450. Based on Fibonacci levels, gold might go into the $2,490-$2,550 target zone if it breaks above this range. In order for this rising trend to continue, daily closings over $2,400 are required for gold.
Additionally, gold's rising trend might quicken if impending US economic data validates a Fed interest rate reduction.
