**Gold Price Rises Past $2,350 on Waller’s Dovish Comments, Soft US Dollar**
*By Christian Borjon Valencia — Adapted and expanded version from original FXStreet reporting*
Gold continues to climb, breaking through the $2,350 mark as dovish signals from Federal Reserve governor Christopher Waller and a weakening US Dollar fuel investor optimism. With markets seeking directional clarity amid ongoing debates about US monetary policy, gold’s recent surge underscores its safe haven appeal and responsiveness to macroeconomic cues.
## Key Highlights
– Gold broke resistance at $2,350 following dovish commentary from the Federal Reserve.
– US Dollar Index remains under pressure, approaching monthly lows near 104.00.
– Treasury yields weaken, increasing investor appetite for non-yielding assets like gold.
– Upcoming US macroeconomic data and Federal Reserve decisions remain critical for gold’s short and medium-term direction.
## Dovish Signals from the Fed Support Bullion
On Wednesday, June 19th, 2024, gold spot prices (XAU/USD) soared past $2,350 per ounce after dovish remarks from Federal Reserve Governor Christopher Waller. Waller signaled openness to cutting interest rates should inflation data continue improving, stating that if the downward trend in inflation persists “for several more months,” the Fed could “start thinking about” lowering rates.
### What Waller Said
– Waller recognized substantial progress in US inflation, dropping from 9 percent at its peak.
– Indicated that further evidence of disinflation in upcoming months could justify policy easing.
– Firmly asserted that it is not “desirable nor necessary” for inflation to instantly hit the 2 percent target before considering a rate cut.
These comments, interpreted as dovish, sharply contrasted with prior hawkish rhetoric that had emphasized caution and patience before considering lower rates. Markets responded by increasing bets on a rate cut as early as September 2024, with futures pricing in around a 70 percent probability at the time of writing.
## US Dollar Weakens Further
The shift in interest rate expectations placed immediate downward pressure on the US Dollar Index (DXY), which dropped toward the 104.00 handle. A weakening dollar makes dollar-denominated assets like gold more attractive to investors using other currencies. This currency effect was clearly visible as the greenback slipped against major peers, fueling gold’s upward momentum.
### Contributing Factors to Dollar Weakness
– Lower Treasury yields as bond traders anticipated eventual policy easing.
– Softer-than-expected economic data, particularly in sectors sensitive to rising rates.
– A global risk-on sentiment as market participants anticipated less aggressive Fed policy.
With the dollar index close to breaking multi-week support, technical factors aligned with the fundamental backdrop of intensifying expectations for a Fed pivot.
## Treasury Yields, Risk Appetite, and Gold’s Rally
US Treasury yields fell across the curve on dovish Fed speculation. The benchmark 10-year treasury yield retreated below 4.25 percent, further reducing the opportunity cost of holding bullion, which does not pay interest.
### How Yields Impact Gold
– Lower yields reduce the attractiveness of government bonds versus gold.
– Investors seek alternative stores of value, especially amid uncertainty on equities.
– As yields fall, gold’s “cost of carry” diminishes, helping prices to advance.
Safe-haven flows remained steady, with ongoing geopolitical tensions and global growth concerns underpinning the bullish case for gold. The asset’s traditional role as an inflation hedge and portfolio diversifier reinforced the rally as investors sought shelter from monetary and market volatility.
## Technical Analysis: XAU/USD Eyes All-Time Highs
Gold’s technical setup strengthened after clearing the $2,350 level. Buyers have their sights set on the historic peaks reached in May 2024, around $2,450 per ounce, contingent on further dollar and yield weakness.
### Support and Resistance Levels
– **Immediate resistance**: $2,365 (recent cycle high)
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