Article by: ETO Markets

The gold price continues in positive territory for the second day in a row, although it pares back some of its intraday advances to a new record high hit during the Asian session on Thursday. It is currently trading around $2,200. The Federal Reserve allayed investor concerns that it would reduce its forecast for the number of rate cuts to two in response to rising inflation by signalling that it is still on track to drop interest rates by 75 basis points this year. This pulls the US Dollar down from a two-week high that was reached on Wednesday and keeps the unyielding yellow metal upward.

Any significant correction down below the $… is probably going to draw new buyers and stay contained in the vicinity of the $… horizontal zone. The weekly swing low, which is located around $…, comes next. If it is decisively broken, this might lead to some technical selling and push the price of gold closer to the next significant support, which is located around $... It's possible for the XAU/USD to continue falling, perhaps reaching the $… round number. The record high of $… and the psychological milestone of $… are the next significant bullish targets.