Gold Price Weekly Forecast: Bullish Momentum Points to $3500 Target

Gold Surges Amid Dollar Weakness and Economic Uncertainty
The gold market delivered another strong performance this week, extending its upward momentum as investors flock to the safe-haven asset amid shifting market dynamics. With gold prices eyeing the $3,500 level, the rally appears well-supported by a combination of US dollar weakness, geopolitical tensions, and central bank policy shifts.

Key Drivers Behind Gold’s Rally
US Dollar Softness – The weakening dollar has been a major catalyst for gold’s rise. As the DXY index (USD) shows signs of fatigue, gold (XAU/USD) gains appeal for international buyers.

Geopolitical and Economic Risks – Ongoing global conflicts, inflation concerns, and recession fears continue to fuel demand for gold as a hedge.

Central Bank Policy Easing – With major banks, including the Federal Reserve and ECB, signaling potential rate cuts later in 2024, non-yielding gold becomes more attractive compared to bonds and savings instruments.

Gold Technical Analysis: Next Targets & Key Levels
Support Levels:

$3,200 (Strong base, tested multiple times)

$3,000 (Major psychological support if a deeper pullback occurs)

Resistance Levels:

$3,500 (Next major target)

$3,800 (Long-term bullish breakout level)

The current gold price action suggests a “buy the dip” strategy remains viable, with $3,200 acting as a strong floor. While short-term consolidation is possible, the overall bullish trend remains intact.

What Could Disrupt Gold’s Rally?
A surprise Fed rate hike or stronger-than-expected US economic data could revive the dollar, pressuring gold.

Easing geopolitical tensions may reduce safe-haven demand.

A sharp equity market rebound could shift capital away from gold.

Final Outlook: Will Gold Hit $3,500?
Given the macroeconomic backdrop, gold’s path to $3,500 looks plausible, though volatility is expected along the way. Traders should watch:

Fed policy signals

US inflation & jobs data

Geopolitical developments

If gold breaks $3,500, the next major target is $3,800, reinforcing its role as a top asset in 2024’s uncertain markets.