Gold (XAU/USD) showcased resilience during Friday’s North American session, climbing 0.30% to trade at $4,344 despite a firming US Dollar and rising Treasury yields. While the 10-year yield rose to 4.147%, bullion found support following a downward revision in the University of Michigan Consumer Sentiment Index (52.9), which highlighted growing concerns over unemployment and a five-month decline in durable goods spending.
The market also weighed neutral-to-hawkish comments from New York Fed President John Williams, who signaled no immediate urgency to adjust monetary policy. Despite the US government shutdown potentially distorting recent CPI data, expectations for a January rate cut remain low at 22%. Looking ahead to a holiday-shortened week, investors will shift their focus to key growth and employment figures due on December 23.
Gold’s recent uptrend has entered a consolidation phase as the year draws to a close, with the metal struggling to break through the critical $4,381 peak. Despite this temporary stall, bullion remains on track for a spectacular annual gain of over 60%. Long-term projections suggest that the momentum could carry prices toward the $4,500 and $5,000 milestones in the coming year.
For the rally to resume, buyers must decisively clear the record high of $4,381, which would open the door for a move toward $4,400 and $4,500. Conversely, a dip below the $4,300 psychological floor could lead to a deeper correction, with initial support levels found at $4,285 and $4,250.
