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Commodities Gold

Gold Falls on Robust US Jobs Data but Remains Ahead of Key Fed Meeting

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  • June 7, 2025
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Gold prices fell for a second consecutive day after a better-than-expected US May Nonfarm Payrolls (NFP) data sapped optimism for an immediate Federal Reserve rate cut and strengthened the US Dollar and Treasury yields. Even though it dropped 0.84% on Friday to $3,322, XAU/USD is poised to end the week with gains of more than 1.30%, underpinned by geopolitical tensions and central bank buying. Traders are now looking forward to next week’s inflation data releases and the Fed policy meeting soon, as the market re-adjusts for monetary easing further down the line in 2025. KEY LOOKOUTS • The strong NFP data lowers expectations for near-term rate reductions, with markets now pricing fewer than two cuts by the end of 2025. • XAU/USD needs to stay above the key $3,300 support or risk further losses down to $3,250 or lower. • Next week’s CPI, PPI, and University of Michigan Consumer Sentiment could continue to drive market sentiment and Fed policy expectations. • Tensions between Ukraine and the Middle East, and constant central bank gold buying, continue to offer a positive environment for Gold. Gold prices declined on Friday after a better-than-expected US jobs report strengthened the US Dollar and Treasury yields and lowered chances of near-term interest rate cuts by the Federal Reserve. Even after the day’s loss, XAU/USD is still up more than 1.30% for the week, buoyed by persistent geopolitical tensions and consistent central bank buying. The market is now setting its sights on pivotal US inflation data releases later next week, which may further influence expectations leading up to the Fed’s June 17–18 meeting. Staying above the $3,300 support level is still vital for Gold to continue its bullish configuration in the near term. Gold declined following robust US jobs data reduced expectations for a Fed rate cut, pushing the Dollar and yields higher. Gold maintains weekly gains above 1.30% despite the decline, underpinned by central bank purchases and geopolitical tensions. •  Gold (XAU/USD) declined by 0.84% on Friday, trading around $3,322 following robust US NFP data. •  The US created 139K jobs in May, topping estimates and maintaining the unemployment level at 4.2%. • Hawkish data prompted traders to trim back Fed rate cut expectations, boosting the US Dollar and Treasury yields. • Gold is poised to end the week with gains of more than 1.30% despite losses on each day of the current week. • Key support for XAU/USD at $3,300 holds; a break here could see $3,250 or lower. • Market attention turns to next week’s US CPI, PPI, and consumer sentiment releases. •  Long-term bullish sentiment is supported by ongoing geopolitics risks and central bank gold purchases. Gold was strong this week despite being challenged by a stronger-than-forecast US Nonfarm Payrolls for May. The on-going strength in the labor market, with 139K new jobs added and unemployment remaining at 4.2%, supported the view that the US economy is still strong. This information changed market expectations surrounding Federal Reserve interest rate trajectory, prompting investors to reduce rate reduction bets in the short term. This caused the US Dollar and Treasury yields to rise, which temporarily weakened Gold prices. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView Nonetheless, wider macroeconomic and geopolitical forces underpin the appeal of Gold as a safe-haven asset. Escalating tensions in Eastern Europe and the Middle East and persistent uncertainty among global financial markets have sustained demand for bullion. Further, central banks continue to buy Gold to diversify away from US Dollar reserves. These structural forces might still underpin the long-term value of Gold irrespective of short-term volatility in economic fundamentals or market sentiment. TECHNICAL ANALYSIS Gold (XAU/USD) is in an extended bull trend despite recent retreats. The price is consolidating above the support level of $3,300, which is a pivotal base for continued upward momentum. A breakout and hold above this level may set the stage for a retest of the high of late at $3,403, with additional upside to the $3,450 level and all-time high of $3,500. However, if XAU/USD breaches below $3,300, it could trigger a deeper correction toward the 50-day Simple Moving Average around $3,235. The Relative Strength Index (RSI) has turned slightly bearish, suggesting a possible continuation of short-term weakness before any rebound. FORECAST If Gold holds resistance above the $3,300 level, bullish interest may resume, which could propel XAU/USD back towards the recent high of $3,403. A breach above that level could attract additional buying, taking prices up to the $3,450 resistance zone. If bullish sentiment gains strength, particularly against a backdrop of geopolitical tensions or low inflation readings, Gold may even test its record high near $3,500 in the sessions ahead. On the other hand, a firm break below the $3,300 support would activate a steeper correction. In that case, Gold can go down towards the 50-day Simple Moving Average around $3,235, followed by the next major support area around $3,167, which was the high of early April. Strength in the US Dollar and increasing yields can provide additional pressure on the downside, especially if coming inflation data supports a hawkish Fed outlook.

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Commodities Gold

Gold Prices Leap Higher as US Economic Downturn and Rising US-China Trade Tensions Drive Safe-Haven Demand

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  • June 4, 2025
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Gold prices jumped as softer-than-anticipated US economic reports and rising US-China trade tensions fueled safe-haven buying. The ISM Services PMI flashed a contraction in business activity, while the ADP employment report registered slower private-sector hiring, highlighting a slowing US economy. President Trump’s executive order increasing tariffs for steel and aluminum to 50% added to trade fears in the meantime. While US Treasury yields and the US Dollar weakened, gold strengthened above $3,380 on hopes of possible Federal Reserve easing later this year. KEY LOOKOUTS •  Monitor coming Initial Jobless Claims and Nonfarm Payroll (NFP) reports, which will further indicate the condition of the US labor market and will impact Federal Reserve policy expectations. •  Keep an eye on continuing trade negotiations and any fresh tariff news or executive orders that have the potential to ratchet tensions up and fuel safe-haven demand for gold. •  Watch for comments from Fed officials and interest rate cut market pricing, as dovish monetary policy almost invariably supports gold prices at higher levels. •  Watch gold’s price action around major resistance levels of $3,400, $3,438, and the all-time high of $3,500 for breakout or reversal signs. Gold’s recent run-up is a reflection of increasing fears that the US economy is slowing down and escalating geopolitical tensions between the US and China. The publication of softer-than-anticipated economic reports, such as a decline in the ISM Services PMI and less robust private job growth numbers, has cooled US growth expectations. At the same time, President Trump’s move to double the tariffs on steel and aluminum raised the uncertainty around international trade flows, pushing investors to take cover in safe-haven assets such as gold. As US Treasury yields declined and the dollar weakened, gold prices have gathered strength though resistance at the $3,400 level is a significant obstacle to keep an eye on. Gold prices jumped as signs of slowing US economic activity and US-China trade tensions picked up. Falling economic data and escalating tariffs fueled safe-haven demand, sending gold past $3,380. Attention now turns to coming US employment reports and Fed policy cues. •  Gold prices bounced more than 0.80% in the North American session, hitting more than $3,380. •  Downbeat US economic reports, such as a decline in ISM Services PMI and weaker ADP employment, pointed towards slowing economy. •  President Trump signed an executive order that raised tariffs on steel and aluminum from 25% to 50%, raising US-China trade tensions. •  Declining US Treasury yields and a declining US Dollar fueled gold’s safe-haven demand. •  The US Dollar Index (DXY) fell 0.44% to 98.81, propelling gold higher. •  Speculation about Federal Reserve rate cuts in the latter part of this year has bolstered gold demand. •  The critical technical resistance for gold is at $3,400, $3,438, and the record high of $3,500, while support is around $3,300 and $3,235. Gold prices have jumped in recent times, fueled by a mix of softer-than-expected US economic indicators and rising trade tensions between the United States and China. The Institute for Supply Management’s report showed a contraction in the services sector for the first time in almost a year, as employment data indicated a deceleration in private hiring. These moves have heightened concerns over the health of the US economy, causing investors to look for safer alternatives like gold. Concurrently, US President Donald Trump’s decision to increase tariffs on steel and aluminum to 50% has added to overall uncertainty surrounding global trade relations, further fueling the metal as a hedge against geopolitical uncertainties. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView The current trade war and indicators of cooling in the economy have also weighed on Federal Reserve policy expectations. Market participants are increasingly expecting the Fed to ease monetary policy toward the end of this year to stimulate growth, particularly with the effect of tariffs on inflation uncertain. This expectation, coupled with a weakening US Dollar and declining Treasury yields, has provided a good climate for prices for gold. While traders look forward to the release of future US jobs data and trade talks, gold is still an asset worth monitoring in the face of the changing economic environment. TECHNICAL ANALYSIS Gold is in a positive trend but is facing resistance at the $3,400 zone, where it has not been able to break decisively of late. The Relative Strength Index (RSI) is showing high buying momentum, which implies that the buyers are still dominant. If gold does break above $3,400, it may set the stage for testing upper resistance points at $3,438 and all-time highs near $3,500. Alternatively, a move below the $3,300 support could prompt a correction, taking prices to the 50-day Simple Moving Average around $3,235 or lower to support at $3,167. FORECAST If gold prices manage to overcome the $3,400 resistance level, then the rally may develop strong momentum, driving the metal towards strategic targets of $3,438 and even test the all-time high around $3,500. More deterioration in US economic indicators, combined with sustained trade tensions and hopes for Federal Reserve easing, would most probably fuel further gains in gold. Safe-haven demand among investors can rise, particularly in case geopolitical tensions escalate or inflation worries mount. On the flip side, if gold cannot hold ground at the $3,400 level and breaks the $3,300 support level, a bearish phase can materialize. This can bring about a fall to the 50-day Simple Moving Average at about $3,235 and further to the support around $3,167. Such a pullback can be caused by a stronger US Dollar, favorable trade relations, or more positive than expected US economic data that reduce safe-haven demand. Traders need to monitor these levels for a reversal or consolidation.

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Commodities Gold

Gold Prices Float below $3,300 as Traders Look to US PCE Data with Trade and Geopolitical Uncertainty Looming

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  • May 30, 2025
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Gold prices are kept in check below the $3,300 level as tame U.S. Dollar firmness puts pressure to the downside before the highly anticipated release of the U.S. PCE Price Index. Despite the dip, downside movement appears limited amid renewed trade tensions, ongoing geopolitical risks, and persistent expectations of Federal Reserve rate cuts later in 2025. A reinstated tariff ruling and uncertainty surrounding global conflict zones have kept investor sentiment cautious, lending support to the safe-haven metal. Though technical indicators imply further downside potential, the majority of traders are in waiting mode for new impetus from U.S. inflation data, which could dictate the Fed’s policy direction. KEY LOOKOUTS • Everyone is watching for the next U.S. inflation data release, which has the potential to have a meaningful impact on the Federal Reserve’s rate cut expectations and near-term direction for the USD and gold. • Russia-Ukraine conflict developments and Middle East ceasefire negotiations still underpin safe-haven demand for gold, offering a potential defense against further losses. • Re-imposition of Trump’s tariffs and rumors of additional trade actions could inject pressure into the markets and indirectly support gold’s appeal in risk-off conditions. • Unclear signals from Fed officials regarding the timing and probability of interest rate reductions leave markets in suspense, rendering short-term gold direction dependent on upcoming data and comments. Investors should pay close attention to the publication of the U.S. PCE Price Index since it has the potential to dramatically alter expectations regarding the Federal Reserve’s interest rate policy and subsequently affect gold prices. Geopolitical tensions, such as the lack of progress in Middle East ceasefire talks and doubts over Russia-Ukraine peace negotiations, continue to provide support to gold’s safe-haven allure. Furthermore, the revival of trade policy uncertainty since the reinstatement of Trump-era tariffs has added additional market volatility, which has made gold a popular hedge. In contrast, conflicting signals from Federal Reserve officials underscore the significance of future economic releases in informing monetary policy, leaving traders nervous and price dynamics in gold very responsive to further developments. Gold traders are monitoring the next U.S. PCE Price Index closely for hints at the Fed’s rate trajectory. Geopolitical tensions and trade policy uncertainty remain in favor of gold’s safe-haven status, limiting downside even with nascent USD firmness. •  Gold stays under $3,300 due to mild U.S. Dollar strength suppressing demand. •  Markets look to the U.S. PCE Price Index, which may frame rate-cut expectations at the Fed. •  Reinstalled Trump-style tariffs introduce trade uncertainty that favors safe-haven assets such as gold. •  Geopolitical tensions in the Middle East and Eastern Europe keep supporting gold’s demand. •  Fed officials are still divided, sending conflicting signals on upcoming rate action. •  Technical indicators indicate bearish momentum, and there could be downside towards $3,245–$3,200. •  Resistance is at $3,325–$3,350 and the breach above might unleash fresh buying interest. Gold prices continue to weaken as market participants wait for the U.S. Personal Consumption Expenditures (PCE) Price Index to be released, a core inflation measure that may have implications for the monetary policy of the Federal Reserve. The information is likely to give more guidance on whether the Fed will continue with rate cuts in the second half of the year, a consideration that has made market players conservative. Although the U.S. Dollar has been mildly firmer, prospects of a more dovish Fed position in the months ahead still underpin interest in gold as a non-yielding asset generally. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView Besides economic statistics, growing geopolitical tensions and reviving trade policy anxieties are keeping gold in the spotlight as a safe-haven asset. The latest imposition of tariffs by a U.S. federal appeals court, along with concurrent wars in Eastern Europe and the Middle East, have contributed to worldwide uncertainty. These together with dovish comments by several Federal Reserve officials have been adding to a watch-and-wait mood in the market that has been upholding gold as a hedge against general macroeconomic and political uncertainty. TECHNICAL ANALYSIS Gold comes up against near-term resistance in the $3,325–$3,326 area, which has already failed to breach on higher attempts. The inability to break above the $3,300 level indicates no strong bullish strength, and short-term indicators are starting to reflect renewed selling pressure. If the price continues to have trouble below important resistance levels, a downward move to the next support zones could be expected. Yet any such sustained break above the $3,325 ceiling may initiate fresh buying interest and potentially leave the way open for a retest of upper levels. FORECAST If the future U.S. PCE figures indicate slowing inflation, this may further support Federal Reserve rate cuts later in the year, weakening the U.S. Dollar and driving gold prices higher. In that case, gold could see fresh buying interest, with room to test levels higher than the $3,300 mark. A continued break past the $3,325–$3,350 resistance level could prompt short-covering and propel prices towards the $3,400 area, buoyed by safe-haven demand as geopolitical and trade tensions continue to hold sway. Conversely, in the event of PCE data surprise to the upside signifying sticky inflation, it might temper hopes of near-future Fed rate cuts and enhance the U.S. Dollar, putting fresh downward pressure on gold. In such a scenario, prices might fall further, with scope to test support levels at $3,280 and potentially carry losses up to the $3,245–$3,200 region. Further dollar strength or resolve on trade and geopolitical fronts would also diminish the safe-haven demand for gold, contributing to the bearish risk.

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Commodities Gold

Gold Price Remains Steady Over $3,300 on Safe-Haven Demand That Continues Despite Key FOMC Minutes Approach

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  • May 28, 2025
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Gold prices continue to hold steady over the $3,300 level as safe-haven demand remains in place despite prevailing tensions in the geopolitical scene, US fiscal issues, and risk-averse sentiment prior to the release of the FOMC Minutes. Even with a modest recovery in the US Dollar and relaxed trade tensions after President Trump’s postponement of EU tariffs, investor unease remains in driving demand for the non-yielding yellow metal. Market players now closely monitor the Fed’s policy stance and forthcoming US economic releases such as Q1 GDP and the PCE Price Index for further guidance. Technically, gold has potential for both near-term pullbacks and continuation higher, with support around $3,245 and resistance near $3,345. KEY LOOKOUTS •  Market players look to the FOMC Minutes for insight into the Federal Reserve’s position regarding forthcoming interest rate reductions, which would directly impact gold prices and USD strength. •   Future important data, such as the Preliminary Q1 GDP and the PCE Price Index, will offer more insight into inflation dynamics and the health of the economy, and could influence Fed policy expectations. •  Russia-Ukraine conflict, Middle East conflicts, and increasing worries regarding the fiscal deficit of the US support continued safe-haven demand for gold. • Look for important support at $3,245 and resistance at around $3,345. A breakout above resistance could initiate a rally to $3,400 and higher, while a fall below support might induce a bearish excursion. Gold traders are eagerly observing some important events that may determine the metal’s short-term trend. The FOMC Minutes release continues to be a top priority, with the markets wanting confirmation of the interest rate path of the Federal Reserve as expectations for two cuts in 2025 build. Furthermore, the forthcoming US economic data, with the Preliminary Q1 GDP and PCE Price Index taking center stage, will provide key insights into inflation and growth that will dictate both Fed policy and investor moods. At the same time, ongoing geopolitical tensions, such as Russia’s moves in Ukraine and turmoil in the Middle East, as well as fears over the US fiscal deficit, continue to support gold’s status as an asset class of last resort. On a technical basis, levels to monitor are support around $3,245 and resistance at $3,345, with a break in either direction set to initiate the next major move. Gold continues to be underpinned above $3,300 as investors look to the FOMC Minutes for transparency on the Fed’s rate-cut trajectory. Safe-haven demand is being fueled by geopolitical tensions and US fiscal concerns, with further volatility potentially being added by forthcoming GDP and inflation releases. • Gold remains firm above $3,300 as investors look for cover amidst geopolitical tensions and US fiscal worries. • FOMC Minutes are closely watched for guidance on the Federal Reserve’s interest rate trajectory. • Market mood is still guarded in spite of President Trump’s postponement of envisaged EU tariffs. • Imminent US economic releases, such as Q1 GDP and PCE Price Index, may drive gold’s direction. • Gold finds support from safe-haven demand amid global uncertainties and inflation. • US Dollar finds it hard to make headway, constrained by budgetary concerns and rate-cutting expectations. • Technical perspective indicates consolidation with scope for both continuation higher and short-term pullbacks. Gold prices remain stable above the $3,300 level, supported by renewed investor hesitancy in the face of geopolitical tensions and US fiscal concerns. Although some easing of trade tensions with President Trump’s postponement of planned EU tariffs, sentiment in the market remains precarious. Concerns regarding the general economic outlook, combined with renewed global conflict and mounting budget deficit anxieties, have maintained demand for the safe-haven metal at high levels. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView Investors are now waiting for the FOMC Minutes release to gauge the direction of Federal Reserve monetary policy. With interest rate cuts anticipated later in the year, gold is expected to continue in the limelight as a hedge against economic uncertainty. Upcoming US economic releases such as Q1 GDP and the PCE Price Index will also be closely monitored for the direction of inflationary trends and growth momentum that may dictate future policy actions. TECHNICAL ANALYSIS Gold is displaying signs of consolidation with an upward bias, as it maintains above important psychological support around $3,300. Though momentum indicators on the daily chart indicate loss of bullish momentum, they have failed to signify a bearish change, which could signal the emergence of fresh buying interest. Near-term resistance lies in the vicinity of the $3,340–$3,345 levels, which also corresponds to a recent trend-line breakdown. A continued advance above this level may spur fresh upside momentum, whereas inability to stay above $3,300 can leave the metal vulnerable to additional declines towards the $3,250–$3,245 resistance zone. FORECAST If gold is able to hold above the $3,300 level and clears the immediate overhead around $3,345, then it may unlock more gains. Rising safe-haven demand, dovish FOMC Minutes cues, or softer-than-anticipated US economic data can impart bullish momentum. Under this scenario, gold can rise to the $3,365 level and potentially extend towards the $3,400 level, provided market sentiment shifts risk-averse or the US Dollar continues to weaken. Alternatively, if gold is unable to stay above $3,300, it can attract more selling pressure. A more robust US currency, Fed hawkish remarks, or improved-than-anticipated economic indicators might deter the metal’s demand. Under these circumstances, prices might fall back to the $3,250–$3,245 area, which is a crucial support level. A firm breach below this region could trigger a more significant corrective period, possibly leaving gold vulnerable to additional sell-offs on the near-term horizon.

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Commodities Gold

Gold Price Dips on Trade Optimism but Resists Bets on Fed Cut and Geopolitical Threats

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  • May 26, 2025
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Gold prices began the week on a weaker footing, dragged by weakening safe-haven demand as US-EU trade optimism picked up following President Trump’s postponement of planned tariffs. Still, the negative seems contained as fears about the US fiscal situation, continued geopolitical tensions in the Middle East and Ukraine, and increasing Federal Reserve rate cut expectations continue to underpin the yellow metal. Although the recent decline, technicals and overall fundamentals indicate any drop is likely to be considered a buying opportunity, with major support at $3,325 and major resistance at $3,400–$3,500 levels. KEY LOOKOUTS • Investors will be looking closely at Wednesday’s FOMC meeting minutes for hints regarding the timing and magnitude of expected interest rate reductions, which can play a huge role in determining the price of gold. • All-important data releases such as Durable Goods Orders (Wednesday), Preliminary GDP (Thursday), and the PCE Price Index (Friday) will give more indication of the health of the US economy and influence market sentiment. • Rising tensions in the Middle East and Ukraine, and whatever fresh sanctions or reactions from major powers, will continue to be key drivers of safe-haven appetite for gold. • The $3,325–$3,324 trendline is support, with a break lower potentially challenging $3,300 and $3,283. On the upside, breaking above $3,366 could set the stage for $3,400, $3,430, and perhaps the all-time high at $3,500. Gold prices continue in the spotlight as markets await economic indicators and geopolitical events. This week, the spotlight will be on the release of the FOMC minutes and significant US data such as Durable Goods Orders, GDP, and the PCE Price Index, which have the potential to influence expectations of future Fed rate cuts. Meanwhile, ongoing worries about the US fiscal deficit and rising geopolitical tensions—specifically in Ukraine and the Middle East—are set to maintain safe-haven demand. From a technical perspective, gold is clinging to support around $3,325, and a move above $3,366 could set the stage for a break towards the $3,400–$3,500 zone, maintaining bullish strength. Gold prices are supported by prospects of Fed rate cuts and ongoing geopolitical tensions despite pressure from weakening safe-haven demand. Gold prices will be watched for new directions this week by traders as they await key US data and FOMC minutes. A break above $3,366 can propel towards the $3,400–$3,500 zone. • Gold prices softened slightly as optimism in trade alleviated safe-haven demand after President Trump postponed EU tariffs. • Support is in place as Fed rate cut expectations continue to rise on weak US inflation and slowing growth. • Geopolitical uncertainty from the Russia-Ukraine conflict and Middle East tensions continue to support gold demand. • US fiscal worries escalate as Trump’s budget bill threatens to exacerbate the budget deficit, further enhancing gold’s appeal as a hedge. • The US Dollar falls, reaching a new monthly low, supporting gold prices by making foreign purchases less expensive. • FOMC minutes and economic data from the US such as GDP and PCE Index are major events this week that will determine the direction of gold. • Technicals indicate support at $3,325–$3,324, and resistance at $3,366; a breakout can reach the $3,400–$3,500 levels. Gold prices began the week on weaker footing as declining trade tensions between the US and the European Union lessened the urgent demand for safe-haven assets. President Trump’s announcement to postpone the imposition of a 50% tariff on the EU boosted optimism across global markets, leading investors to take on a more risk-on stance. Yet, that optimism is moderated by ongoing fears of the US fiscal situation, after the passing of a huge budget bill that has the potential to greatly expand the federal deficit in the years ahead. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView Aside from fiscal concerns, geopolitical risks remain the support for gold’s attractiveness. The Ukraine war, combined with elevated Middle East tensions, keeps investors on edge and underpins demand for safe-haven assets such as gold. In addition, expectations that the Federal Reserve will reduce interest rates later this year—fuelled by disappointing inflation readings and a slowing growth picture—contribute to the bullish tone around the metal. With global uncertainty persisting, gold continues to be a popular hedge against economic turmoil and political shocks. TECHNICAL ANALYSIS Gold is still underpinned by a wider bullish pattern, and recent price action continues to look resilient above important trendline levels. In spite of a minor pullback, the metal continues to be traded in an uptrend channel, reflecting continued buying interest on dips. Momentum indicators on the hourly and daily charts continue to reflect a positive bias, which indicates that any downside is going to be contained. So long as gold remains above near-term supports, the current trend benefits buyers with scope for continuation higher if bull sentiment advances. FORECAST Prices of gold can continue higher in the next sessions with support from dovish expectations over monetary policy by the Federal Reserve. With markets already factoring in several rate reductions this year because of dampening inflation and a slow economic environment, falling interest rates may further erode the strength of the US Dollar and make non-yielding assets such as gold more attractive. Moreover, persistent geopolitical tensions as well as fears regarding US fiscal health are set to maintain strong investor appetite for safe-haven assets. If bullishness prevails, gold may revisit key psychological points, with room to test old highs. On the bearish side, gold may come under pressure if trade sentiment continues to improve or if near-term US macroeconomic data surprises to the upside, reducing the need for rate cuts. Any indications of resilience in inflation or better-than-forecast economic data would lead to a more hawkish stance by the Fed, favoring the US Dollar and making gold less appealing. Although overall fundamentals remain generally favorable, any short-term change could come from a fleeting shift in risk appetite or profit-taking if support levels are broken.

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Commodities Gold

Gold Spikes Over $3,350 as Trump Ramps Up EU Trade War and US Fiscal Risks Become Deeper

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  • May 24, 2025
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This week, gold prices spurted above $3,350, spurred by increased safe-haven demand following U.S. President Donald Trump’s move to ramp up trade war tensions with the European Union by threatening 50% tariffs on imports. Investor worries over fiscal stability in the U.S. added to the rally following the House’s passage of a $4 trillion debt-burdened budget. In spite of some relaxation of geopolitical tensions with developments on the Ukraine and Iran negotiations, risk aversion was still high, driving XAU/USD up by almost 5% on the week. A weakening US Dollar, declining Treasury yields, and dovish Fed commentary also helped drive the bullish trend in gold markets. KEY LOOKOUTS • As the Fed’s go-to inflation indicator, the report will have a large bearing on interest rate expectations and gold prices. A less-than-expected print could make the case for cutting rates even stronger, boosting gold. • Market participants will scrutinize the wording and tone for hints on the policy direction of the central bank and the course of rates into the growing fiscal and geopolitical uncertainties. • Important economic data that will provide insight into the condition of the U.S. economy; poor data could push gold as a safe-haven asset. • If XAU/USD breaks above the $3,400 level of resistance, a test of the record high around $3,500 may come next, fueled by robust bullish momentum and a weak risk environment. Gold traders will in the coming days keep a keen eye on important U.S. economic indicators, such as the Core PCE Price Index, which might influence perceptions of future Federal Reserve policy action. The upcoming release of the Fed’s most recent meeting minutes might also indicate the central bank’s position amid increasing fiscal stability and inflation fears. Moreover, the Durable Goods Orders and the second GDP estimate will be under scrutiny as they provide additional insights into the U.S. economy’s strength. Technically, a clear break above the resistance of $3,400 can trigger a rally to the all-time high of $3,500, particularly with risk sentiment being weak. Gold dealers are looking ahead to future U.S. information, such as Core PCE inflation and revisions to GDP, for hints at Fed policy. A move above $3,400 has the potential to spark a push toward the all-time high of $3,500 while risk aversion continues and the dollar remains weak. •  Gold advanced above $3,350, up almost 5% for the week as geopolitical and economic uncertainty increased. • Trump ramped up trade tensions with threats of 50% tariffs on EU imports, fueling safe-haven demand. • U.S. House approved a $4 trillion debt-laden budget, fueling worries about fiscal stability and pushing gold higher. • The U.S. Dollar weakened, with DXY down more than 0.66%, serving as a tailwind for gold prices. • Treasury yields decreased, making gold a more attractive non-yielding asset. • Soft U.S. housing data and cautious comments from the Fed fueled investor jitters. • The major resistance is at $3,400, with a possible rise to $3,500 if positive momentum is sustained. Gold is attracting strong investor buying amid global uncertainties that are rising, especially after U.S. President Donald Trump aggressively escalated trade tensions with the European Union. His warning to place tariffs of 50% on EU imports revived fears of a wider trade conflict that is leading to a flight towards safe-haven assets such as gold. This action was combined with scathing criticism from U.S. authorities regarding the stalemate in negotiations with Europe, further weakening investor confidence. Furthermore, geopolitical events, such as continuous negotiations on Ukraine and Iran, have brought brief relief but have not considerably assuaged the risk-averse sentiment of markets. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView Meanwhile, local fiscal worries within the United States are exerting additional pressure. The House of Representatives just voted to pass a $4 trillion budget that notably raises the national debt ceiling, and this is raising eyebrows among investors regarding long-term economic stability. Such concerns are added to by declining confidence in U.S. assets and overall caution by the Federal Reserve, as noted by major policymakers. Despite these coinciding factors, gold remains a safe-haven store of value in an otherwise volatile world. TECHNICAL ANALYSIS Gold (XAU/USD) is in a very strong uptrend, with bullish momentum bolstered by a positive macro environment. Price has made steadily higher highs and higher lows, reflecting ongoing support from buyers. The Relative Strength Index (RSI) is increasing but remains below overbought territory, implying potential for additional upside. Pivotal resistance levels to observe are the psychological $3,400 level, followed by May 7 high of $3,438, and the all-time high of $3,500. On the downside, near-term support is at $3,300, with stronger support at $3,204 and the 50-day Simple Moving Average (SMA) around $3,199. FORECAST Gold prices will continue to get supported in the near term because of ongoing macroeconomic and geopolitical tensions. If the U.S. Dollar weakens further and Federal Reserve sends a dovish signal in the face of weakening inflation data or weakening economic trends, then gold may continue its rally. A move above the $3,400 level could set the stage for the way to the May high of $3,438, with the possibility to challenge the all-time high of $3,500. Sustained safe-haven appetite, particularly in the wake of trade tensions and fiscal worries, may maintain bullish strength. To the downside, any indications of de-escalating tensions between the U.S. and EU or better-than-anticipated U.S. economic data may temper gold’s bull run. Should the Federal Reserve take on a more hawkish stance or when yields start climbing once more, gold may be pressured. A fall below the $3,300 support mark could prompt further falls toward the $3,204 region, then the 50-day SMA around $3,199. Increased demand for risk assets and a recovery in the U.S. Dollar would also prevent gold from moving higher in the near term.

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Commodities Gold

Gold Price Falls on Trade Optimism and Lower Fed Rate Cut Expectation

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  • May 15, 2025
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Gold prices keep on falling as a relaxation of US-China trade tensions and shrinking hopes of aggressive Federal Reserve rate cuts cut down the demand for the safe-haven asset. The temporary agreement on trade and evidence of economic resilience in the US has lifted Treasury yields, further pressuring non-yielding gold. In spite of recurring geopolitical tensions and a weaker sentiment in equity markets, XAU/USD touched its lowest mark since early April, breaching important technical levels of support. Investors now eye the forthcoming US Producer Price Index data and Federal Reserve Chair Jerome Powell’s speeches for new cues, as gold’s outlook stays firmly bearish. KEY LOOKOUTS • Due for release later today, the PPI will provide clues on inflation trends and impact the Fed’s monetary policy direction going forward, affecting gold prices. • Traders will be attentive to Powell’s remarks for hints on the rate cut path, which may influence market sentiment and determine USD and gold price direction. • Increasing yields are still putting pressure on non-yielding assets such as gold. A sustained rally might help amplify bearish momentum in XAU/USD. • Escalating tensions in the Middle East and actions in the Ukraine-Russia conflict might provide minimal support to gold, but so far, these have not been adequate to turn around the current selling sentiment. Market participants must closely monitor a few important factors driving gold prices in the short term. The release of upcoming US Producer Price Index (PPI) numbers and a speech by Federal Reserve Chairman Jerome Powell are slated to provide fresh views on inflation and monetary policy that could markedly shift market mood. Moreover, a continued up move in US Treasury yields has kept non-yielding assets such as gold firmly in the dovish camp. Although geopolitical threats, such as tensions in the Middle East and the Ukraine-Russia conflict, continue to exist, they have not so far been contributing positively to gold prices amidst prevailing macroeconomic forces. Gold prices are still under pressure as declining US-China trade tensions and lowered Fed rate cut hopes push investors out of safe-haven assets. Upcoming US PPI and speech by the Fed Chair Powell are major events that could dictate the next direction in XAU/USD. Higher bond yields and technical breakdowns also add to the bearish scenario. • Gold prices fell to $3,135, the lowest since April 10, under persistent selling pressure. • US-China trade optimism cut safe-haven demand, as a 90-day tariff ceasefire put recessionary fears aside. • Fed rate cut expectations have fallen, and markets are now pricing in just about 50 basis points of easing this year. • Increasing US Treasury yields continue to pressure gold, which does not pay any yield and loses attractiveness in a rising rate environment. • Middle East and Ukrainian geopolitical tensions remain but have not managed to trigger a significant gold price rebound. • Technical levels of importance were broken, such as the $3,200 level and the 61.8% Fibonacci retracement, indicating further potential downside. • Market attention turns to US PPI numbers and Fed Chair Powell’s speech, which may be the next directional driver for XAU/USD. Gold prices are under persistent pressure as overall market sentiment moves out of safe-haven assets. The recent de-escalation of US-China trade tensions has gone a long way in damping investor worries of a global slowdown. A temporary tariff truce for 90 days and encouraging signs from both governments have helped instill confidence again, leading to a shift towards risk assets and away from gold. Meanwhile, more robust-than-anticipated US economic data have prompted traders to temper expectations of aggressive Federal Reserve interest rate cuts, diminishing gold’s attractiveness in the present climate. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView Apart from the better trade prospects, words from a number of Federal Reserve officials indicate a conservative, wait-and-see stance on future rate actions. They recognized advancements in moving inflation towards the 2% level and stressed more data before adjusting policy further. Although geopolitical tensions — such as those in the Middle East and Eastern Europe — are still in focus, they have had modest effects on investors’ behavior recently. All attention is therefore focused on future US economic data and Federal Reserve commentary, which might influence the prospects for both monetary policy and demand for gold in the coming weeks. TECHNICAL ANALYSIS Gold has fallen below important support levels and this signifies a prolongation of the downtrend. The decline below the $3,200 level and the 61.8% Fibonacci retracement of April’s upswing signifies that selling pressure is building. Daily chart oscillators are also becoming negative, supporting the likelihood of continued downside. Intraday support is at the $3,135–$3,133 range, and a clean break below this level would allow access to the $3,100 target and beyond towards $3,060. Upwardly, any rebounding attempts will continue to meet resistance around $3,170, stronger around $3,200 and $3,230, which should limit gains unless sentiment shifts. FORECAST If gold can recapture momentum, a rally may first aim at the $3,170 resistance level, then a possible retest of the $3,200 level. A breakout above this level may set the stage for a further bounce towards $3,230, which is situated at the 50% Fibonacci retracement level. A close above this level may spark renewed buying interest, driving gold towards $3,265 and potentially the $3,300 psychological level. But any positive is likely to be received with suspicion unless dovish Federal Reserve rhetoric is firmly in place or global risk aversion sharply worsens. To the downside, further selling pressure may push gold beneath near-term support at $3,135–$3,133. A firm break here would most probably hasten the fall toward the $3,100 level. If bearish momentum continues, the next significant support is at $3,060, a threshold that may prove to be a firmer bottom unless wider economic or geopolitical factors bring renewed stress. With the existing bearish technical configuration and macroeconomic headwinds in place, risk remains skewed to the downside absent some catalyst over the near term in the form of data or Fed commentary shifting market expectations.

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Commodities Gold

Gold Prices Drop Below $3,250 on US-China Trade Deal and Bullish USD Sentiment

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  • May 12, 2025
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Gold prices have fallen sharply below the $3,250 mark as bullish sentiment on the US-China trade deal and a stronger US dollar negatively impact the precious metal. The pact between the two nations to cut tariffs significantly has improved global risk sentiment, causing investors to move away from safe-haven assets such as gold. In the meantime, soothing US recession concerns and the Federal Reserve’s aggressive interest rate hawkishness have also continued to prop up the dollar, further weighing on gold prices. With market focus now shifting to future US inflation readings and Fed Chairman Jerome Powell’s testimony, traders are expecting further gold declines, particularly if the price breaks below crucial support levels. KEY LOOKOUTS • The release of the next US inflation numbers later this week will be closely watched, as they may affect market expectations for future Federal Reserve action, specifically on interest rates, that would impact the outlook for gold. • Powell’s on-stage appearance on Thursday may further clarify the Fed’s thoughts on rate cuts, potentially sparking yet more US dollar strength and prolonging bear pressure on gold. • The long-term implications of the US-China tariff reduction agreement will also influence global risk sentiment in the future. If tensions in trade continue to ease, demand for safe-haven assets such as gold may still be muted. • Be on the lookout for price breakdowns below the $3,250 level, especially around the $3,200 level, which can serve as a point for more losses. Alternatively, a bounce above $3,300 may point towards potential short-covering and price reversal. With gold prices still falling below the $3,250 threshold, a number of influential factors are at play. The new US-China trade deal, which constitutes a substantial lowering of tariffs, has supported risk appetite at the international level, encouraging investors to move away from safe-haven instruments such as gold. This combined with the Federal Reserve’s aggressive approach to raising interest rates and the strength of the US dollar has further put pressure on the precious metal. Traders are now waiting for significant events, such as the publication of US inflation data and statements by Fed Chair Jerome Powell, which may offer key information about the future trajectory of both gold and the dollar. Furthermore, technical levels near $3,200 are still pivotal, with a break of this support potentially causing further falls for gold. Gold prices are under stress, declining below $3,250 due to optimism for the US-China trade deal and a stronger dollar dulling the appetite for the metal. Gold’s near-term direction will probably be determined by significant market events, such as US inflation numbers and Fed Chairman Jerome Powell’s upcoming remarks. •  Gold prices have declined below the level of $3,250, a major fall in the market. •  The US-China trade tariff cut accord has enhanced overall risk sentiment worldwide, dampening the demand for safe-haven assets such as gold. •  Optimism over the trade agreement and the Federal Reserve hawkish pause has been favorable for the US dollar, placing added pressure on gold prices. •  Positive developments in the trade front have succeeded in tempering fears over the possibility of a US recession, further diminishing gold’s attractiveness. •  The $3,200 level is still a key support level for gold, and any breakdown below it could trigger further losses. •  Traders are looking forward to US inflation data releases that could shape expectations of future Fed rate hikes and affect gold prices. •  We will be looking for any new signals in Powell’s testimony that could give direction for both the US dollar and gold in terms of future monetary policy. Gold prices have remained under pressure with prices dipping below the $3,250 benchmark as market sentiments change following news of a development in the US-China trade discussions. The easing of tariffs among the two nations has triggered sentiments in global markets, promoting the risk-on position that reduces appetite for safe-haven assets such as gold. As investors disengage from risk-off positions, the price of gold has continued to decline, noticeably. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView Apart from the trade agreement, the US dollar has picked up strength as recession concerns eased and the Federal Reserve maintained its hawkish interest rate stance, which weighed further on the price of gold. The market now awaits major economic events, including the announcement of US inflation figures and comments from Federal Reserve Chairman Jerome Powell, that can shape investor sentiment and potentially give fresh direction to the precious metal in the days to come. TECHNICAL ANALYSIS Gold prices have slid below $3,250, led primarily by a spike in optimism over the US-China trade deal, which has given global risk sentiment a boost. The tariff-cutting accord between the two countries has prompted investors to shift away from safe-haven investments such as gold, directing attention to risk-sensitive investments. Moreover, the solidifying US dollar, bolstered by declining recession fears and the hawkish tone at the Federal Reserve regarding interest rates, has also dented gold’s attraction. While markets wait for major economic reports, such as US inflation figures and remarks by Fed Chair Jerome Powell, the future of gold is uncertain. FORECAST Gold prices may recover somewhat if the market responds to any surprise negative economic data or geopolitical tensions that revive demand for safe-haven assets. Furthermore, if inflation readings come in higher than anticipated or if Fed Chairman Jerome Powell indicates a more dovish approach to interest rates, it may soften the US dollar and boost gold’s upside. Gold could also draw support if investor sentiment shifts toward caution again, especially if trade negotiations between the US and China breakdown or face some setbacks. To the downside, gold may suffer additional pressure if the US-China trade deal optimism continues to underpin global risk-on sentiment. A firmer US dollar, boosted by the Federal Reserve’s hawkish bias and upbeat economic data, can provide additional pressures to gold’s decline. If inflation figures indicate stabilization and the Fed holds its aggressive stance on interest rates, the allure of gold might decrease further still, with

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Commodities Gold

Gold Prices Fall for Second Day on Trade Deal Hopes and Fed Forecast

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  • May 8, 2025
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Gold prices continued their two-day decline, falling close to 1% on Thursday as risk appetite improved in anticipation of a possible UK-US trade deal, pushing investors out of safe-haven assets. Market sentiment improved after both governments made announcements that suggested an agreement was close at hand, although details are still thin. Further pressure on gold was exerted by the Federal Reserve’s move to keep interest rates unchanged and Fed Chairman Jerome Powell’s statements underscoring the U.S. economy’s strength amidst continuing trade tensions. Amidst short-term fixes ruling the market, there are still hedge funds that are optimistic about gold, such as Waratah Capital Advisors, placing bets on its long-term worth amidst global economic volatility. KEY LOOKOUTS • Markets are waiting anxiously for the 14:00 GMT statement by President Trump, with speculation that a speedy agreement might be narrow in scope. A delay or disappointing detail might spur a rebound in gold prices. • Support is being tested at $3,338 immediately, with additional downside potential to $3,311 and $3,245. On the upside, important resistance lies at $3,413 and $3,462 if bullish momentum returns. • The Fed’s keeping rates at 4.25%-4.50% and Powell’s cautious rhetoric indicate no cuts until summer, putting pressure on gold in the near term but allowing room for a rebound if economic indicators soften. • Even after the recent pullback, funds such as Waratah Capital Advisors remain optimistic about gold’s upside potential, banking on longer-term gains in the face of geopolitical uncertainty. Gold prices fell for a second consecutive day on Thursday, dropping close to 1% to $3,333 as optimism about the possibility of a UK-US trade deal and a solid Federal Reserve outlook increased. The expected announcement, due at 14:00 GMT, has lifted risk appetite, and investors have begun to rotate out of safe-haven assets such as gold. Although the details of the agreement are yet to be confirmed, preliminary reports indicate that it might be narrow in scope. Further, the Federal Reserve’s holding of interest rates steady and comments from Chair Jerome Powell on the resilience of the economy have also pinned down gold. Some hedge funds such as Waratah Capital Advisors, however, remain positive and consider gold a strategic hedge during a global trade environment that is uncertain. Gold prices declined almost 1% for a second day in a row as hopes for a UK-US trade deal dampened demand for safe-haven assets. The fall was also underpinned by the Federal Reserve’s consistent interest rate policy and positive economic outlook. •  Gold (XAU/USD) fell almost 1% on Thursday, continuing a correction that started the day before, trading at $3,333 in early European hours. •  Expectation of a UK-US trade deal announcement at 14:00 GMT has enhanced global risk sentiment, leading to a move away from safe-haven assets such as gold. •   Markets are expecting further trade deals to come, which is lowering global uncertainty and leading investors to offload gold holdings. •  The Fed left interest rates at 4.25%-4.50%, indicating that no cuts are likely before summer, which pressured gold further. •  Fed Chairman Jerome Powell recognized the resilience of the economy but cautioned against potential tariff-induced effects down the road. •  Gold has support at $3,338 and $3,311, with firmer technical support at $3,245. Resistance would come in at $3,413 and $3,462 should prices recover. •  In spite of the recent fall, funds such as Waratah Capital Advisors are adding exposure to gold, seeing it as a long-term protection against global trade tensions. Gold prices fell further for the second day in a row as global markets responded positively to reports of an imminent trade deal between the United States and the United Kingdom. The news, due at 14:00 GMT, has given hope of other trade agreements in the offing, as geopolitical tensions have been eased. Such improved optimism has lowered the need for other traditional safe-haven assets such as gold, which investors often use when the climate is not certain. Confirmation from US and UK authorities, including comments from Bloomberg and the Financial Times, has lent credibility to the mooted agreement, although final terms of the deal are unclear. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView The additional pressure on gold was added by the Federal Reserve’s recent move to keep interest rates unchanged at 4.25%–4.50%, in line with expectations. Fed Chairman Jerome Powell said that although the US economy continues to be strong, the full effects of tariffs and international uncertainty could still be seen later this year. In the absence of any near-term rate cuts to come, which usually favors non-yielding assets such as gold, some investors still believe in gold’s long-term worth. Hedge funds like Waratah Capital Advisors keep supporting gold as a haven in light of persistent trade tensions and possible economic realignments. TECHNICAL ANALYSIS Gold has been recently rejected close to the R1 resistance level of $3,413 after a short-lived rally, indicating significant selling pressure at the area. It is now testing the support at $3,338, which has remained short-term significant during recent sessions. If bearish momentum persists, gold may fall to the next support at $3,311, although this level is symbolic rather than structurally relevant. A more profound correction may find firmer support around $3,245, which has functioned historically as a significant floor. To the upside, a reversal must overcome $3,413 convincingly to aim for the next resistance around $3,462. FORECAST If the forthcoming UK-US trade deal disappoints markets or is seen as symbolic, gold may experience another bout of upward rush as investors pile in looking for safe haven on ongoing uncertainty. Otherwise, any indication of economic weakness to be seen in subsequent US data, or surprise dovish hints from the Federal Reserve, might resuscitate the bullish trend. If that happens, gold might try to regain the $3,413 resistance level, and a breakout above it could pave the way towards $3,462 and higher. Alternatively, if the U.S.-UK trade deal is received positively and leads to more large-scale global agreements, risk appetite might keep increasing, and demand for

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Commodities Gold

Gold Soars as Geopolitics and Fed Uncertainty Fuel Safe-Haven Demand

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  • May 5, 2025
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Gold prices rallied more than 1% on Monday, fueled by safe-haven demand as geopolitical tensions rise and with investors expecting the Federal Reserve’s next interest rate decision. Geopolitical tensions, such as a Houthi missile strike close to Ben Gurion airport and rising hostilities in Gaza, and U.S. President Trump’s attack on the Fed, have led investors to take refuge in gold. Although the CME FedWatch tool shows a low likelihood of a rate cut this week, markets are anticipating a potentially more dovish attitude in the subsequent months. According to technical analysis, gold could continue moving upward, and the important resistance points are at $3,290 and $3,320, and the support points at $3,244 and $3,219. KEY LOOKOUTS • Ongoing tensions in the Middle East, such as the Houthi missile attack on Ben Gurion airport and Israel’s subsequent military retaliation, continue to increase market uncertainty, fueling safe-haven demand for gold. • The Federal Reserve’s May 7 meeting is a key event for market sentiment. Although no rate cuts are anticipated, any indication of dovishness or slowing of rate hikes could continue to support gold prices. • President Trump’s continuing criticism of the Federal Reserve and Chairman Jerome Powell, along with the possibility of political pressure, may lead to the Fed’s policy direction in the future, affecting gold as a safe-haven asset. • Gold has breached significant resistance levels, with the next targets being $3,290 and $3,320. Nevertheless, robust support is established at $3,244 and $3,219, which may decide whether the uptrend momentum will be sustained. As geopolitical tensions increase, especially with the Houthi attack close to Ben Gurion airport and Israeli military build-up, investors are rushing towards gold as a safe-haven asset. With the Federal Reserve’s rate decision approaching on May 7, the market is anxiously awaiting any hints of dovishness, particularly as President Trump continues to put pressure on the Fed to reduce rates. Although short-term rate cuts are not expected, the potential for a dovish stance in the next few months could continue to fuel gold price gains. Technically, gold has penetrated key resistance levels and the next possible targets are $3,290 and $3,320, and support continues to be firm at $3,244 and $3,219, positioning for potential further upward movement. Gold prices have shot up as a result of escalating geopolitical tensions and expectations for the Federal Reserve rate decision on May 7. As tensions in the Middle East continue to increase and Trump keeps criticizing the Fed, gold is a robust safe-haven asset, bolstered by technical support levels above $3,244. • Increasing tensions, such as the Houthi strike on Ben Gurion airport and Israel’s subsequent military response, are increasing market uncertainty and supporting demand for gold as a safe-haven asset. • U.S. President Donald Trump’s ongoing frustration with the Federal Reserve and demands for rate cuts may affect market sentiment and Fed policy actions. • The Federal Reserve will make its rate decision on May 7, with markets looking for no rate cuts but keenly awaiting any signs of dovishness in reaction to recent economic news. • Gold has surged by over 1% as investors rush to it due to geopolitical uncertainty and a risk-averse economic outlook. • Gold has broken key resistance levels at $3,265, with possible upside targets at $3,290 and $3,320. • Firm technical support for gold is at $3,244 and $3,219, which may act as a floor for prices if there is any pullback. • Even with recent softening in U.S. economic data, gold continues to be an attractive hedge, especially if the economy is threatened by stagnation or recession risks from extended high rates. Gold prices have risen as investors look for safety in the face of increasing geopolitical tensions, such as the Houthi attack on Ben Gurion airport and rising tensions in the Middle East. These events, combined with uncertainty over the Federal Reserve’s next action on interest rates, have prompted traders to consider gold a safe investment. President Trump’s consistent vitriol against the Fed, coupled with his rate cut calls, has introduced more volatility to market sentiment, and gold has become a greater option for investors who want to safeguard their investments against possible economic turmoil. XAU/USD DAILY CHART PRICE CHART SOURCE: TradingView With the rate decision by the Federal Reserve just around the corner on May 7, the markets are anxiously watching for any indication from the Fed of impending rate cuts or a dovish policy. While no short-term rate cuts are anticipated, the general economic environment, with softening in some areas, has fueled speculation that the Fed might refrain from tightening monetary policy further. This ambiguity, coupled with the persistent geopolitical tensions, still underpins gold’s safe-haven status, with investors taking bets on its capacity to withstand possible economic setbacks or extended episodes of market turbulence. TECHNICAL ANALYSIS Gold has just cleared major resistance points, pointing towards a possible continuation of the positive trend. The price crossed the $3,265 level, hinting at further potential on the upside with near-term levels of resistance at $3,290 and $3,320. On the negative side, support is firm at $3,244, with further support at $3,219. These technical levels are important in defining gold’s near-term price direction, as a break below these support levels could indicate a change in sentiment, while further strength above them can confirm the bullish view. The latest price action is being watched carefully to determine if the upward trend will be maintained in the days before the Fed’s rate announcement. FORECAST Gold will continue to gain, fueled by both geopolitical uncertainty and market volatility over the Federal Reserve’s policies. With global risks still on the rise, investors will continue to turn to gold as a safe-haven asset. If gold holds firm above the $3,265 resistance level, it may test the next crucial levels at $3,290 and $3,320. A sustained dovish stance by the Federal Reserve, especially if they indicate no near-term rate cuts or additional monetary tightening, would also continue to support the uptrend. As long as geopolitical tensions continue

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