Article by: ETO Markets

Gold (XAU/USD) is currently uncertain, hovering near the weekly peak as the European session begins. The short-term outlook favors a bullish trend, supported by last week's rebound from the 50-day Simple Moving Average (SMA) after the Federal Reserve's dovish stance. However, resistance comes from some Fed officials opposing early rate cuts, a slight uptick in the US Dollar (USD), and positive global equity sentiment.

Traders are awaiting Friday's US Core PCE Price Index release, while Wednesday's focus is on the Conference Board's US Consumer Confidence Index. Technically, a break above $2,047-2,048 may trigger more buying, aiming for $2,072-2,073 and $2,100. Conversely, a drop below $2,018-2,017 support could lead to $2,000, with further declines targeting the 50-day SMA at $1,989-1,988 and potentially $1,957 near the 200-day SMA.