Gold (XAUUSD) continues its strong bullish momentum, building on the recent surge that has seen it hit fresh all-time highs. The daily outlook remains positive, with the precious metal consolidating near its peak. The primary driver for this sustained rally is the ongoing expectation of Fed rate cuts, fueled by recent weaker-than-expected economic data, particularly from the US. This, combined with persistent geopolitical tensions, reinforces gold’s appeal as a safe-haven asset. Today’s price action is likely to be a test of key resistance levels, with a high degree of volatility possible as the market digests the weekend’s news and prepares for the week ahead.

Changes to Weekly Outlook

The weekly outlook, which was already bullish, has been strengthened by new developments. The disappointing US Non-Farm Payrolls (NFP) data released last Friday has significantly solidified market bets on an aggressive Fed rate cut. This has created a more pronounced bearish sentiment for the US Dollar, which directly benefits gold. The previously established range-bound outlook has been definitively broken to the upside, and the weekly outlook is now firmly bullish, with the focus shifting from consolidation to potential continuation of the rally. Any significant pullback will likely be viewed as a buying opportunity.