Gold hits ten-day highs above $4,050 at the start of the week on Monday.
US Dollar holds the latest upswing, fuelled by US government reopening hopes.
Gold eyes acceptance above 21-day SMA near $4,080 amid bullish technical setup.
Gold is building on Friday’s rebound in Asian trades on Monday, having briefly regained the $4,050 psychological barrier to hit ten-day highs. Traders await fresh cues on the end to the record US government shutdown amid mounting economic concerns.
Gold consolidates its latest leg higher, with buyers taking a breather amid a positive shift in risk sentiment as markets stay hopeful about the US government reopening.
US Senate voted 60-40 in the first approval on extending the enhanced Affordable Care Act subsidies early Monday, passing the government funding bill to end the shutdown.
Additionally, risk flows dominate as China announced on Sunday the temporary suspension of its ban on approving exports of dual-use items related to gallium, germanium, antimony and super-hard materials to the United States, per Reuters.Despite the broader market optimism, investors remain wary as the amended package would still have to be passed by the House of Representatives and sent to President Donald Trump for his signature, a process that could take several days.
This, combined with growing concerns over the US economy amid the fallout of the record government shutdown continues to lend support to the traditional store of value, Gold.
The University of Michigan released data on Friday, which showed that the preliminary Consumer Sentiment Index dropped to 50.3 in early November, the lowest in nearly three-and-a-half years.
Weakening consumer sentiment followed the data published by the executive outplacement firm Challenger, Gray & Christmas on Thursday, revealing that corporations announced a 183.1% monthly surge in layoffs, the worst October in over two decades, per Reuters.
Against this backdrop, markets continue to price in about a 66% chance of the US Federal Reserve lowering interest rates in December.
Gold also draws support from rising metal holdings by China. China’s Gold ETF surged 164% in the first nine months of 2025, while the People’s Bank of China boosted its Gold purchases for an 11th straight month, raising reserves to 2,303.5 tons.
Looking ahead, Gold’s price action will likely be determined by the US shutdown news and the probable publication timeline of the missed economic data releases. In the time, market sentiment and Fed rate cut expectations will continue providing sone trading incentives in Gold.
Daily technical analysis
The daily chart suggests that upside risks prevail in the near term for Gold as the 14-day RSI points north of the midline.
Gold now looks for acceptance above the $4,050 psychological level to take on the 21-day SMA at $4,081.
A sustained move above the latter will expose the 23.6% Fibonacci Retracement level of the parabolic rise to the record high that began on August 19 at $4,129.
On the downside, the initial hurdle is seen at $3,973, the 38.2% Fibo level of the same advance.
Next on sellers’ radars will be the intermittent lows near $3,930, a break below which would expose the $3,900 figure.
GOLD keeps sight on $4,080 key resistance
Gold is building on Friday’s rebound in Asian trades on Monday, having briefly regained the $4,050 psychological barrier to hit ten-day highs. Traders await fresh cues on the end to the record US government shutdown amid mounting economic concerns.
Gold consolidates its latest leg higher, with buyers taking a breather amid a positive shift in risk sentiment as markets stay hopeful about the US government reopening.
US Senate voted 60-40 in the first approval on extending the enhanced Affordable Care Act subsidies early Monday, passing the government funding bill to end the shutdown.
Additionally, risk flows dominate as China announced on Sunday the temporary suspension of its ban on approving exports of dual-use items related to gallium, germanium, antimony and super-hard materials to the United States, per Reuters.Despite the broader market optimism, investors remain wary as the amended package would still have to be passed by the House of Representatives and sent to President Donald Trump for his signature, a process that could take several days.
This, combined with growing concerns over the US economy amid the fallout of the record government shutdown continues to lend support to the traditional store of value, Gold.
The University of Michigan released data on Friday, which showed that the preliminary Consumer Sentiment Index dropped to 50.3 in early November, the lowest in nearly three-and-a-half years.
Weakening consumer sentiment followed the data published by the executive outplacement firm Challenger, Gray & Christmas on Thursday, revealing that corporations announced a 183.1% monthly surge in layoffs, the worst October in over two decades, per Reuters.
Against this backdrop, markets continue to price in about a 66% chance of the US Federal Reserve lowering interest rates in December.
Gold also draws support from rising metal holdings by China. China’s Gold ETF surged 164% in the first nine months of 2025, while the People’s Bank of China boosted its Gold purchases for an 11th straight month, raising reserves to 2,303.5 tons.
Looking ahead, Gold’s price action will likely be determined by the US shutdown news and the probable publication timeline of the missed economic data releases. In the time, market sentiment and Fed rate cut expectations will continue providing sone trading incentives in Gold.
Daily technical analysis
The daily chart suggests that upside risks prevail in the near term for Gold as the 14-day RSI points north of the midline.
Gold now looks for acceptance above the $4,050 psychological level to take on the 21-day SMA at $4,081.
A sustained move above the latter will expose the 23.6% Fibonacci Retracement level of the parabolic rise to the record high that began on August 19 at $4,129.
On the downside, the initial hurdle is seen at $3,973, the 38.2% Fibo level of the same advance.
Next on sellers’ radars will be the intermittent lows near $3,930, a break below which would expose the $3,900 figure.
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