Fundamental analysis of XAU/USD

The rise in gold prices can be attributed to a unique combination of market strength and economic indicators. On Tuesday, gold futures and spot prices rose sharply on the back of a weaker dollar and lower U.S. Treasury yields. The trend will improve gold investment and lower costs for holders of other currencies, especially as the dollar hit its lowest point in two and a half months. 
This development has been driven by falling U.S. Treasury yields, strong demand in bond markets recently and speculation about interest rates. Recent economic reports show that interest rate hikes by the U.S. Federal Reserve have caused the economy to stagnate, which is reinforcing market sentiment. These sentiments are stronger than expectations that the Fed will stop or pause future interest rate hikes and are waiting for more information from the minutes of the last meeting. Markets generally expect the Fed to leave interest rates unchanged at its December meeting, but sentiment is growing that the Fed will cut interest rates, which could support gold prices. 
Given these expectations, a weak US dollar and ongoing geopolitical tensions, the short-term outlook for gold is positive. In addition, continued selling of the US dollar, driven by expectations of Fed action, provided further support for gold on Tuesday. US macroeconomic data was disappointing, dampening the outlook for a rate hike and increasing speculation of a rate cut in 2024. This led to a decline in US bond yields, which supported gold prices. 
While demand for traditional 'safe-haven' assets such as gold is weak, there is optimism in stock markets and metal prices have been driven lower by these factors. Expectations that China will step up economic stimulus measures to support the post-pandemic economic recovery have boosted investor sentiment. Market participants are now focused on the minutes of the upcoming Federal Open Market Committee (FOMC) meeting to get a clearer picture of the Fed's monetary easing plans.
Technical analysis and scenarios:

The current hungry alligator condition suggests that the market is in an uptrend, supporting the main bullish scenario.  The presence of both in the green zone further confirms the bullish sentiment and indicates the strength of the uptrend. The main scenario assumes continuation of the bullish trend with a buying opportunity on a break above 2000.00. The alternative bearish scenario, although less likely given the current indicators, suggests selling on a break below 1985.00. 
Main scenario (BUY)
Recommended entry level: 2000.00
Take Profit: 2005.00
Stop loss: 1998.50
Alternative scenario (SELL)
Recommended entry level: 1985.00
Take Profit: 1980.00
Stop loss: 1987.50