Gold rebound above $3,670 on Friday after briefly reaching weekly lows of $3,630, as dip buyers jumped in despite a strong US Dollar and an increase in US Treasury yields. The demand was underpinned by strong demand from China and India, which countered the plunge in Swiss exports to the US under tariff uncertainty. The last 25-basis-point rate cut by the Fed, which indicates a low-rate regime, also supported bullion, aiding XAU/USD’s bounce back following successive bearish days. Technical analysis indicates the bullish trend may persist, with possible tests of all-time highs around $3,703 if the momentum is sustained.
KEY LOOKOUTS
• Future Fed actions and economic statistics, such as Core PCE, Durable Goods, and GDP releases, may determine gold’s direction.
• Robust demand from China and India continues to provide a strong underpinning for bullion, counterbalancing weakness in Western markets.
• A sturdy US Dollar and increasing Treasury yields may pressure gold, so XAU/USD’s stability is even more noteworthy.
• Important support at $3,650 and resistance around $3,703–$3,750 will dictate short-term price action.
Gold remains resilient as it bounces back above $3,670 on the back of dip buyers and robust Asia demand, even with a solid US Dollar and higher US Treasury yields. The recent cut by the Fed in interest rates has made the low-rate environment friendly, prompting investors to shift back to the non-yielding metal. Even though Swiss exports to the US collapsed strongly on the back of tariff uncertainty, sharply higher shipments to China and India have supported bullion’s upside. Technical charts indicate the rally could persist, with $3,703 and $3,750 serving as pivotal resistance levels to monitor.
Gold recovers over $3,670 as decline buyers return, with healthy demand from China and India. With a firm US Dollar and increasing Treasury yields, the uptrend in bullion holds. Pivotal resistance levels to monitor are $3,703 and $3,750.
• Gold rebounded off weekly lows at around $3,630 and trades above $3,670.
• Dip buyers intervened in the face of a strong US Dollar and increasing US Treasury yields.
• China and India’s robust demand helped underpin bullion over faltering Swiss exports to the US.
• The recent 25-basis-point Fed rate cut set a positive low-rate backdrop for gold.
• XAU/USD reversed following back-to-back bearish sessions, up more than 0.69%.
• Technical indicators indicate possible resistance at $3,703, $3,750, and $3,800.
• The key support levels are $3,650, $3,613, and $3,600 in case the uptrend weakens.
Gold is gaining momentum as buyers step in to purchase after declines, underpinned by renewed demand from significant Asian markets. Imports from China and India have risen sharply, counteracting the disruption of Swiss exports to the US due to tariff uncertainty. The appeal of the metal is also enhanced by the recent Fed rate cut, which has established a conducive environment of low interest rates that usually favors non-yielding assets such as gold.
XAU/USD DAILY CHART PRICE
SOURCE: TradingView
Market sentiment remains cautiously optimistic with global economic factors still driving bullion demand. As the US Dollar and Treasury yields remain robust, solid consumer and industrial demand from Asia has been supportive of gold prices. Market players are keeping a close eye on upcoming economic data and central bank moves, which are set to drive market trends in the coming weeks.
TECHNICAL ANALYSIS
Gold has moved back into its uptrend after rebounding above $3,670, with momentum indicators like the Relative Strength Index (RSI) registering fresh bullish momentum after recovering from overbought territory. The key resistance levels to monitor are $3,703, $3,750, and $3,800, which may serve as potential targets in case the buying pressure is maintained. On the other hand, support is expected around $3,650, with additional cushioning near $3,613 and $3,600, giving traders clear levels for entry and exit points.
FORECAST
Gold will continue to go higher in the near term on the back of firm Asian buying and the supportive low-rate environment fostered by the recent Fed rate cut. If buying continues, XAU/USD may touch key resistance at $3,703 and even $3,750, with a possible revisit to $3,800 on sustained momentum.
But a turn around cannot be avoided if the US Dollar gets stronger or Treasury yields shoot up sharply. Then gold will be under selling pressure, with initial support at $3,650 and further down targets at $3,613 and $3,600, which can be used as crucial levels for dip buyers to again get in.
