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Commodities Gold

Gold is Making Gains on the Back of Weaker USD and Geopolitical Tensions, Puts Key Resistance Levels in Its Sights

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  • June 9, 2025
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Gold prices recovered from a one-week low, supported by a weaker US dollar and increasing geopolitical tensions that bolstered safe-haven demand. While recent improvements in US jobs data scaled back expectations for imminent Federal Reserve rate cuts, gold was still near enough to snap a two-day losing streak. Investors are cautious as they look ahead to pivotal US-China trade negotiations, and constant strife and uncertainties continue to support the precious metal’s appeal. Technically, gold is met with resistance around $3,350 to $3,380, but has the potential to probe higher levels if it can hold gains above these points. KEY LOOKOUTS • The result of the high-stakes London negotiations has the potential to have a significant impact on market sentiment and gold’s safe-haven demand. • Fed rate cut expectations changes will influence gold’s price action, particularly because it is very sensitive to interest rate movements. • Heightening tensions in conflicts like the Russia-Ukraine conflict continue to uphold gold as an asset that provides refuge. • Be on the lookout for important support levels at $3,283–$3,282 and resistance levels at $3,352–$3,378, which will guide the near-term direction of gold. Gold prices have continued to exhibit strength in the face of a complicated blend of factors, recovering from a recent low as the US dollar fell and geopolitical tensions continued. While the strong US employment report has dampened hopes of near-term Federal Reserve rate cuts, the gold safe-haven demand continues unabated due to sustained uncertainties such as ongoing escalations and impending US-China trade talks. Market players are monitoring closely key technical levels that will either cap further losses or clear the way for fresh bullish drives towards significant resistance areas around $3,350 and higher. Gold prices regained ground from a one-week low due to a weaker US dollar and increasing geopolitical tensions. While solid US jobs data undermined hopes of a rate cut, safe-haven demand and the looming US-China trade negotiations keep the outlook for gold cautiously positive. • Gold price rebounded from a one-week low, supported by a generally softer US dollar. • Geopolitical tensions, such as the Russia-Ukraine war, remain supportive of gold’s safe-haven demand. • Friday’s US Nonfarm Payrolls report revealed firmer-than-expected employment growth, cooling bets on any near-term Fed rate cuts. • The US dollar reversed prior gains following the NFP, assisting gold in breaking a two-day losing streak. • Investors tread with caution as important US-China trade talks are set to take place in London. • Technical support of gold is at the $3,283–$3,282 level, while resistance remains around $3,352–$3,378. • A sustained break above resistance has the potential to drive gold prices up to $3,400 and higher to the $3,425–$3,430 area. Gold prices have received fresh support as the US currency lost ground at the beginning of the week, allowing the precious metal to recoup some of its recent losses. The current geopolitical uncertainty, especially the halted peace negotiations in the conflict between Russia and Ukraine, has triggered increased demand for safe-haven assets such as gold. Investors, in the meantime, continue to remain cautious ahead of critical US-China trade talks that will be held in London and may carry far-reaching implications for global economic stability and market sentiment. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView The US labor market figures published last Friday revealed more-than-anticipated growth in jobs, which has cooled down prospects for near-term Federal Reserve interest rate reductions. Nevertheless, there are still ongoing concerns regarding the financial well-being of the US government and overall economy, which continue to underpin gold’s appeal. With uncertainties being on-going, market participants are weighing these against each other while closely observing developments in trade negotiations and geopolitical developments that would continue to weigh on gold’s safe-haven demand. TECHNICAL ANALYSIS Gold demonstrated strength by remaining above the pivotal $3,300 level and the 200-period Simple Moving Average (SMA) on the 4-hour chart, indicating near-term support. A clear break below the $3,283–$3,282 zone would set the stage for additional drops towards the May 29 swing low at about $3,245 and possibly the $3,200 zone. On the flip side, gold encounters sturdy resistance in the $3,352–$3,378 zone, where sellers could step in to limit gains. But a break above this resistance area could initiate a bullish momentum change, possibly propelling prices towards the $3,400 psychological level and higher, towards the $3,425–$3,430 area. FORECAST In the short term, gold may come under downward pressure if it cannot sustain above the important support level of $3,283. A decline below this level could step up selling, leading prices to the $3,245–$3,246 region and possibly test the $3,200 level. This bears scenario may be initiated by more robust US dollar momentum or easing geopolitical tensions, lowering gold’s safe-haven status. On the other hand, on the positive side, a continuous rally past the $3,352–$3,378 resistance area may draw in new buying interest and ignite a short-covering rally. Such a rally will allow gold to test the $3,400 psychological figure and extend further gains to the $3,425–$3,430 region. If the bullish trend continues, gold may even touch its record high at around $3,500, particularly if geopolitical tensions rise or US interest rate cut hopes grow stronger.

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Commodities Gold

Gold Retains Gains Near $3,250 as Safe-Haven Demand Increases Due to Economic and Geopolitical Fears

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  • May 19, 2025
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Gold has recovered to sit near the higher end of the intraday range at $3,250, amid increased safe-haven demand due to rising economic and geopolitical concerns. The recent credit downgrade of the US government by Moody’s, in combination with fears of growing debt and ongoing geopolitical tensions, has increased investor demand for the non-yielding metal. In addition, hopes of Federal Reserve interest rate cuts in 2025 and a weaker US Dollar are still supporting gold’s attractiveness despite hopes of a US-China trade truce and new trade agreements capping gains. Technical analysis suggests cautious optimism, with key resistance levels at $3,252 and $3,275 to watch before further gains can be confirmed. KEY LOOKOUTS • Gold’s ability to sustain gains above the $3,250-$3,252 resistance zone will be crucial to confirm a potential rebound and open the way toward the $3,300 mark. • Keeping a watch on US economic data and Federal Reserve statements is crucial, as dovish comments may continue to undermine the US Dollar and bolster gold prices. • The ever-present geopolitical risks in the Middle East and Russia-Ukraine tensions continue to be essential factors that may fuel safe-haven demand and shape gold’s direction. • A dip below the $3,200 support level may expose gold to more weakness towards $3,178 and even further to the $3,120-$3,100 area, probing lower support levels. Investors need to carefully monitor if gold is able to stay above the key $3,250–$3,252 resistance level, as a break above this level could set the stage for advances to the $3,300 level. Critical upcoming releases of US economic data and Federal Reserve speeches will also be crucial, as dovish indications can continue to weaken the US Dollar and underpin prices for gold. In the meantime, the ongoing geopolitical tensions in the Middle East and the Russia-Ukraine crisis continue to underpin safe-haven demand. On the other hand, a firm fall below the $3,200 support area may initiate additional selling pressure and drive gold to the $3,120–$3,100 levels to probe lower support levels. Gold’s next move depends on a break above the $3,250 resistance to reach $3,300, aided by safe-haven buying and a weaker US Dollar. Major US economic indicators and geopolitical tensions will also drive price action, while a fall below $3,200 may indicate deeper losses. • Gold price is hovering at the upper limit of its intraday range at $3,250 on the back of safe-haven demand. • Moody’s downgrade of the US credit rating has raised concern about the fiscal health of the US, adding to the attractiveness of gold. • US Dollar is weighed down by expectations of Federal Reserve interest rate cuts in 2025 and is supporting gold prices. • Positivity toward a US-China trade truce and possible new trade agreements tops the gold’s upside. • Political tensions in the Middle East and persistent Russia-Ukraine conflict support safe-haven buying. • The key resistance zones to monitor are $3,250–$3,252 and $3,274–$3,275; a break above may take prices to $3,300. • Support zones are around $3,200 and $3,178–$3,177; a break below may see prices fall further to $3,120–$3,100. Gold prices have strengthened recently as investors seek safety amid mounting economic and geopolitical uncertainties. The surprise downgrade of the US government’s credit rating by Moody’s has raised concerns about the nation’s fiscal health and growing debt, prompting a shift toward safe-haven assets like gold. Additionally, expectations that the Federal Reserve may cut interest rates in 2025 have weighed on the US Dollar, further enhancing gold’s appeal. Geopolitical tensions, especially persistent conflict in the Middle East and Eastern Europe, still keep demand for the precious metal as a defensive asset on the rise. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView In spite of some optimism over a short-term US-China trade truce and expectations of more trade deals, these encouraging developments have yet to assuage investor worries to a great extent. Ongoing risks such as revived threats of tariffs from the US administration and patchy economic indicators of diminishing growth keep investors in a subdued mood. Consequently, gold continues to be a popular choice for investors who wish to hedge against economic uncertainty and geopolitical tensions in the short term. TECHNICAL ANALYSIS Gold is now probing major resistance levels, implying subdued optimism among traders. The metal is testing resistance at its recent highs, which indicates that buyers are unwilling to drive prices much higher without greater momentum. Technical indicators and moving averages imply that gold might be consolidating and will wait for a definitive breakout to establish a sustained uptrend. On the other hand, any inability to penetrate these points of resistance may bring about temporary pullbacks, and thus it would be crucial that investors observe price action carefully before entering into new positions. FORECAST If gold can pierce the present resistance levels, it may be able to draw in fresh buying interest, sending prices higher. All this could be fueled by sustained geopolitical tensions, continuing US credit rating fears, and ongoing hopes for Federal Reserve rate reductions. Under these circumstances, gold may be able to experience a sustained rally as investors turn to it for protection against economic uncertainty and weakness in currencies. On the negative side, supportive news such as advancements in US-China trade talks or indications of more vigorous economic growth may undermine the attraction of gold as a haven. Moreover, any surprise hawkish cues from the Federal Reserve or revival of the US Dollar could act as a dampener on the prices of gold. Failing to support key levels of support might induce additional selling pressure leading to a pullback as market players reconsider risk appetite and migrate to high-yielding assets.

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Commodities Gold

Gold Clings Above $3,000 Despite Pullback, Poised for Weekly Gain as Strong US Dollar and Geopolitical Tensions Sustain Prices

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  • March 22, 2025
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Gold prices fell for the second day in a row on Friday, dropping to about $3,019 as investors took profits and the US Dollar gained strength. Gold is still poised for weekly gains, however, driven by escalating geopolitical tensions and uncertainty in the market. The strong position of Federal Reserve officials, with no hurry to lower interest rates in the face of economic uncertainty and the effect of President Trump’s trade policy, has also added strength to the Greenback. Rising tensions in Gaza have meanwhile contributed to market anxiety, sustaining gold’s safe-haven appeal despite momentum indicators pointing towards a possible short-term correction. KEY LOOKOUTS • Short-term pullbacks notwithstanding, gold’s resilience in remaining above the psychological $3,000 level reflects underlying bullishness and further potential for the price to go higher if investors buy back. • The strengthening US Dollar and the dovish stance of Fed officials, who don’t see an immediate need to reduce interest rates, still depress gold prices short term. • Gaza violence and increasing geopolitical tensions may provide support to gold as a safe-haven asset, keeping investors in suspense. • The nearest support is at $3,020, then the key $3,000 and $2,954 levels. On the upside, a move above $3,050 may lead the way to the $3,100 Gold traders are keenly observing key factors that may determine price action in the next few days. In spite of recent profit-taking and the strength of the US Dollar, gold’s resilience to remain above the pivotal $3,000 level indicates sustained investor appetite. The Federal Reserve’s conservative approach to interest rate reductions and increasing US Treasury yields are pinning down bullion, but geopolitical tensions—most notably the renewed hostilities in Gaza—are sustaining gold’s safe-haven demand. Market participants will also be watching key technical levels, support around $3,020 and resistance at $3,050, which might dictate the direction of XAU/USD in the next session. Gold continues to hold up above the $3,000 level despite temporary profit-taking and a firmer US Dollar. Geopolitical tensions and the Fed’s hawkish tone remain at play and continue to affect market sentiment, with investors ready to watch out for key technical breakouts. • Gold prices fall for the second day in a row but stay above the $3,000 mark. • Gold is poised to record weekly gains despite the retreat, driven by market uncertainty. • US Dollar gains as investors react to Fed’s conservative approach to rate cuts. • Fed officials signal no hurry to loosen policy, citing economic uncertainty and Trump’s tariffs. • Geopolitical tensions increase as Israel renews attacks in Gaza, fueling safe-haven demand. • Technical perspective indicates short-term support at $3,020 and major resistance at $3,050. • Momentum indicators indicate a possible short-term pullback, but long-term trend is bullish. Gold prices have remained resilient this week, holding firm despite a temporary dip towards the close of the trading sessions. The market still struggles with a stronger US Dollar, fueled by cautious indications from Federal Reserve officials who have reaffirmed their policy of keeping interest rates unchanged in the face of economic uncertainties. With no imminent intention to loosen monetary policy, investors are closely watching how trade policies, particularly the effects of newly imposed tariffs, will influence the overall economic outlook in the next few months. XAU/USD Daily Price Chart Chart Source: TradingView Grappling with market tensions are mounting geopolitical threats, especially in the Middle East. The recent restart of hostilities in Gaza after a two-month ceasefire has ratcheted up global uncertainty. Such events usually heighten demand for safe-haven assets such as gold since investors want insulation from possible worldwide instability. Despite short-term threats, long-term economic and geopolitical issues continue to underpin the role of gold in diversified investment portfolios. TECHNICAL ANALYSIS Gold still shows a widely bullish trend in spite of recent declines. The metal has managed to hold above the important psychological level of $3,000, reflecting strong underlying support. Momentum indicators such as the Relative Strength Index (RSI) do, however, indicate a short-term loss of bullish momentum, with the index having fallen for the second day in a row. If selling pressure intensifies, gold may test lower support zones at $3,020 and major resistance at $3,050 , while a rebound above recent resistance could reignite upward momentum. Traders are closely watching these key levels to determine the next directional move. FORECAST Gold prices could see a fresh rally in the coming sessions. A sustained move above recent resistance levels may open the path toward higher targets, potentially revisiting the $3,050 zone and beyond. Sustained geopolitical tensions, uncertainty over global trade policies, and any economic softening would further enhance the safe-haven appeal of gold. And on the Federal Reserve front, any change in tone to a dovish position could be the trigger for fresh bullion buying interest. Conversely, if profit-taking persists and the US Dollar stays firm, gold could experience more downside pressure. A breakdown below the $3,000 psychological level would instigate a more serious correction, sending prices down to the next support levels. Increasing US Treasury yields and ongoing hawkish messages by Fed officials could also hamper sentiment, inducing transitory losses in gold’s positive trend. Unless key support levels are broken decisively, however, the overall outlook should still remain positive in the medium term.

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