Gold is moving upward as economic challenges increase expectations of Federal Reserve rate cuts
The US dollar is weakening due to fears of slower economic growth and a prolonged government shutdown which is boosting demand for gold as a safe haven
With the US government reopening risk sentiment is improving but overall fundamentals still support further upside for XAU USD
Any pullback can still be considered a buying opportunity
Analysts estimate the shutdown may have reduced GDP growth by 1.5 to 2 and recent weak employment data is adding pressure on the dollar
Job losses and a slight rise in unemployment have increased dovish expectations from the Fed which continues to support gold
Technically gold has broken above 4200 and the next resistance is near 4240/4260 while 4218 is now acting as support
Indicators remain positive suggesting the upward trend is still strong
