Gold Surges Over 3% as Dollar Plummets on Dovish Fed Outlook

Gold prices surged more than 3% on Wednesday, propelled by a sharp decline in the US dollar as market participants digested a predominantly dovish outlook for Federal Reserve monetary policy.

These fresh gains highlight robust attempts to break above the eight-day trading range, which is defined by a floor of $4,310 and reinforced by the daily Ichimoku cloud base at $4,358, alongside range tops in the $4,440 zone. However, several upward ticks failed to secure a daily close above the Fibonacci barrier at $4,416, which represents the 50% retracement of the $4,889/$3,942 bear leg.

A sustained break higher is expected to generate a signal of bullish continuation. Immediate targets are positioned at $4,509 (the 200-day moving average) and $4,527 (the 61.8% Fibonacci level), while a stronger acceleration would bring the round figure of $4,600 and $4,666 (the 76.4% Fibonacci level) into focus.

Daily technical studies have firmed following multiple moving average bullish crossovers, underpinned by strong bullish momentum and a thick daily Ichimoku cloud.

The previously broken barriers at $4,440 (range top) and $4,416 (50% retracement) have now reverted to solid support levels. These are expected to hold any potential dips and maintain the integrity of the fresh bullish structure.

Res: 4509; 4527; 4600; 4666
Sup: 4440; 4416; 4371; 4330

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