Gold Approaches ATH as Technical Squeeze Drives Rally Ahead of US Data

Gold prices have surged toward all-time highs following a sustained period of range-bound trading, with spot gold climbing 1.2% to $2,048 per ounce in early Monday trading. The precious metal's rally since Friday appears driven by technical factors, including a short squeeze and momentum-based buying, rather than fundamental catalysts. Traders are exercising caution ahead of this week's critical US economic releases, particularly the Non-Farm Payrolls report, which could significantly impact Federal Reserve policy expectations and dollar strength. The correlation between gold and currency markets remains strong, with dollar weakness providing additional support for the rally. Technical indicators suggest immediate resistance at the $2,075 all-time high, while support has formed at $2,025. Market participants warn against chasing the current move without confirmation from upcoming data, as positioning appears stretched ahead of potentially market-moving economic releases.