Gold (XAU/USD) extended gains for a second day on Friday, trading around $4,180 as the market looked towards $4,230, the top of October’s range. The move came as US Treasury yields eased and dovish remarks from Federal Reserve officials weighed on the US Dollar, even after September’s Producer Price Index (PPI) ran hotter than expected and followed an earlier upside surprise in consumer inflation. Retail spending also showed resilience despite rising prices, yet expectations of an October rate increase remained muted, with policymakers signalling a pause while they assess the effects of September’s hike.
Fed Policy and Market Expectations
At the International Monetary Fund (IMF) forum in Bangkok, Federal Reserve Chair Kevin Warsh reiterated the central bank’s resolve to curb inflation and pointed to the economy’s resilience, without offering fresh near-term guidance.
Technical Outlook for Gold
Technically, XAU/USD was quoted at $4,179, with the 4-hour Relative Strength Index (14) near 57 and the Moving Average Convergence Divergence (MACD) still above zero. Resistance is seen at $4,200 and then $4,230, with a break opening $4,315, while support sits near $4,150 and $4,070, with $4,000 below as the next psychological level.
