**Gold Price Forecast: Fresh Upside Potential Emerges Following Establishment of Daily Low**
*Original article by Ross Burland, FXStreet*
Gold prices showed renewed strength in early trading, climbing above key support levels and setting the stage for a fresh bullish outlook. Market participants are closely watching price action for confirmation of further upward momentum in the near term. As the precious metal responds to broader macroeconomic forces—including U.S. dollar performance, real yields, and central bank policy—traders are re-evaluating gold’s technical landscape and positioning for possible further gains.
This article provides a comprehensive analysis of the gold market based on the FXStreet article by Ross Burland, as well as additional insights gathered from current market news and analysis to expand upon the topic. The intention is to provide a deeper understanding of the technical setups, fundamental drivers, and market sentiment likely to influence gold prices over the coming sessions.
## Recent Price Action and Technical Overview
According to Ross Burland’s analysis on FXStreet, gold appears to have established a daily low, creating the necessary technical base for a renewed upside push.
### Technical Takeaways:
– The key daily low has formed near a significant support level, suggesting bearish momentum has been exhausted for now.
– Following this baseline support, gold formed higher price structures, hinting at a new upward trajectory.
– Prices have shifted back above short-term moving averages, further validating the bullish outlook for the short term.
– On intraday charts like the H1 (Hourly) and H4 (Four-Hour), a bullish flag breakout seems to be taking place, which often serves as a reliable continuation pattern.
Analysts monitoring this development will likely focus on resistance levels near the $2,040–$2,050 region, watching for consolidation or follow-through breakout momentum towards $2,070 and beyond.
## Key Technical Levels to Watch
– **Support:**
– $2,015: The recent swing low and zone of multiple bounces
– $2,000: Psychological and round number support
– $1,985–1,990: Strategic support levels from previous swing lows
– **Resistance:**
– $2,035–$2,040: Immediate area of congestion and prior supply
– $2,070: Marked resistance corresponding to early May highs
– $2,090–$2,100: Longer-term resistance zone and critical upside target
If the price breaks above $2,050 decisively, it could propel gold prices toward these higher zones, especially if supported by favorable macroeconomic developments.
## Market News and Fundamental Developments
Gold prices have remained sensitive to a broad mix of fundamental themes. These include moves in Treasury yields, the trajectory of the U.S. dollar, inflation expectations, and geopolitical risks. Let’s examine how each of these factors is contributing to the current bullish narrative.
### 1. U.S. Dollar Weakness
– The U.S. dollar has shown softness in recent sessions, especially after dovish commentary from Federal Reserve officials.
– Markets are recalibrating expectations for future rate cuts, especially with inflation data showing moderate cool-downs.
– A weaker dollar tends to boost gold prices, as it makes the metal cheaper for foreign buyers and more attractive as a hedge against potential U.S. dollar depreciation.
### 2. Real Yields and Inflation Expectations
– Real yields (nominal yields minus inflation) are a key driver for gold. When real yields decline, non-yielding assets like gold become more attractive.
– Current inflation rates are moderating but remain elevated relative to central bank targets, which contributes to investor interest in inflation hedges.
– As long as real yields remain compressed or fall, gold stands to benefit from continued speculative and hedge-based flows.
### 3. Federal Reserve Policy Outlook
– Traders are pricing in a high probability of a rate cut toward the end of 2024. CME’s FedWatch Tool shows
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