Gold XAU/USD consolidates gains above $4,300

LONDON (October 17) Gold has pulled back on Friday after hitting a fresh all-time high at the $4,380 area, yet with downside attempts contained above $4,300 so far. The precious metal is on track for a nearly 8% rally this week on its best weekly performance in years.

An uncommon combination of risk aversion and a US Dollar weakness has sent precious metals skyrocketing this week. Investors are seeking shelter in traditional safe assets amid the escalating trade tensions between the US and China, while the US shutdown and recurrent signals that the Fed is about to accelerate its easing cycle are undermining confidence in the Greenback.

Technical Analysis: Downside attempts keep finding buyers 

So far, the pair is being contained above the $4,300 round level while the intra-day low is at $4,277. A deeper correction might bring the Octoner 14 high, at $4,180, into play.

To the upside, above the mentioned all-time high, at the $4,380 area, the $4,400 psychological level will pose some resistance. Further up, the 127.2% Fibonacci extension of the October 14-16 rally, at $4,455, emerges as a potential target.

FXStreet