Gold Holds $4,300 Support as Wall Street Turns Bullish

Spot gold closed the trading week near $4,377 per ounce. The metal secured a positive weekly gain after a volatile start. This performance broke a three-week losing streak. The rebound occurred despite a Federal Reserve rate hike. Traders shifted their stance from bearish to bullish. The final price remained above the $4,300 threshold.

The week began with significant selling pressure. Spot gold traded at $4,340 on Sunday evening. Prices fell to a one-month low of $4,279.30 by Tuesday. This drop followed rising oil prices and near-5% Treasury yields. The market fully priced in a Federal Reserve rate increase. Investor sentiment turned cautious ahead of the policy decision.

Fed hike fails to suppress demand

The Federal Open Market Committee voted 12-0 to raise rates. The target range increased by 25 basis points. The new range sits between 3.75% and 4.00%. Projections indicated 16 of 18 policymakers expected another hike. Spot gold fell to a weekly low of $4,261.80 on Wednesday. The initial reaction was negative. However, the decline was short-lived.

A recovery started on Thursday. Crude oil prices declined for a third consecutive session. The U.S. dollar weakened against major currencies. Treasury yields moved away from their weekly highs. These factors reduced pressure on the precious metal. Spot gold climbed to a weekly high of $4,400.60 on Friday. The rally extended into the weekend.

Survey data confirms bullish consensus

The latest GN auto markets/commodities: gold prices survey shows a unified view. Wall Street participants are now unanimously bullish. Main Street investors also support the bullish majority. This shift follows the solid weekly performance. Analysts cite technical indicators for their optimism. The market structure has improved.

Marc Chandler of Bannockburn Global Forex noted the four-week gain. He identified a bottom near $4,235.60. The weekly high approached $4,400. He sees potential for further upside if levels hold. Other analysts pointed to broader macroeconomic factors. They view the current environment as favorable for gold.

Technical levels drive next move

Traders monitor specific price zones for direction. A move above $4,432 to $4,445 is key. This range acts as a resistance level. Breaking through would lift market sentiment. Conversely, holding the $4,300 support is vital. This floor prevented further downside during the week. The balance of power has shifted.

Rich Checkan of Asset Strategies International highlighted real returns. With rates at 4% and inflation at 3.4%, the spread is small. He argues gold offers better value than bonds. Consumer perception of inflation remains high. This discrepancy supports precious metal demand. The market remains focused on these economic gaps.