Gold is soaring above $2000 ahead of FOMC Minutes

Gold Index (XAU/USD) rose by 1.40% in Tuesday’s trading session, breaking through the $2,000 barrier and rising by 1.40%.

This was primarily driven by the downdraft in US yields and a weak US dollar. The FOMC November minutes will be released later in the session, where investors will look for further clues on forward guidance.

Inflation in the US has shown signs of cooling, and the labor market and economic activity have also seen signs of weakening. Fed officials kept a cautious tone, warning that further tightening may be implemented if needed.

The bond market could see volatility if investors detect any fresh clues on the Fed’s next steps. The 2,5 and 10-year rates declined to 4.86%, 4.40%, and 4.39%, benefiting gold.

The surge in buying pressure is underscored by the Moving Average Convergence Divergence (MACD) and the XAU/USD placement above the 20,100, and 200-day Simple Moving Averages (SMAs), suggesting that buyers have taken control over the broader market outlook.

Support Levels: $1,980, $1,960, $1,935.
Resistance Levels: $2,010, $2,030, $2,050.