Forex Trading Tools and Services

Commodities Gold

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

  • BY
  • June 7, 2025
  • 0 Comments

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.

Read More
Commodities Gold

Gold Falls as Better US Jobs and Trade Hopes Cool Rate Cut Bets

  • BY
  • May 3, 2025
  • 0 Comments

Gold (XAU/USD) continued to fall on Friday, weighed down by better-than-expected US jobs data and fresh optimism regarding US-China trade talks, both of which took the shine off the safe-haven asset. April’s Nonfarm Payrolls topped expectations, maintaining the unemployment rate at 4.2%, prompting traders to reprice expectations for hawkish Federal Reserve rate cuts. At the same time, China’s indication that it is willing to restart trade talks with the US improved market mood, triggering risk-taking and causing profit-taking in Gold. As XAU/USD pulled back from highs of about $3,269 to move near $3,226, the metal is set to close out the week with losses of more than 2.5%, with technicals indicating a break below major support at $3,200 in the cards. KEY LOOKOUTS •  April Nonfarm Payrolls surpassed expectations, keeping the unemployment rate unchanged at 4.2%, leading traders to reduce aggressive Fed easing expectations. •  XAU/USD fell below $3,250 and is headed for a steep weekly fall as profit-taking gains momentum with better risk sentiment. •  China’s receptiveness to trade negotiations with the US boosted global risk appetite, lowering investor appetite for Gold. • RSI lower trends with XAU/USD expected to break the $3,200 support line to expose downside targets at $3,167 and the 50-day SMA at around $3,080. Gold (XAU/USD) declined on Friday as better-than-expected US jobs data and softening US-China trade tensions reduced demand for the safe-haven commodity. The April Nonfarm Payrolls report revealed job gains beating forecasts, with the unemployment rate remaining unchanged at 4.2%, prompting traders to dial back bets on deep Federal Reserve rate cuts. Adding to the squeeze, China’s commerce ministry indicated that the US was receptive to trade negotiations, lifting market optimism and risk appetite. Consequently, Gold fell under the $3,250 price level, reaching around $3,226 and poised to break even for a weekly loss in excess of 2.5%, with its technical indicators in favor of moving below the support level of $3,200. Gold (XAU/USD) fell to about $3,226 as robust US jobs data and fresh trade optimism cut safe-haven demand. Traders trimmed Fed rate cut expectations, sending Gold towards a weekly decline of more than 2.5%. A fall below $3,200 may reveal additional downside levels. • Gold (XAU/USD) fell more than 0.35% on Friday, trading at about $3,226 and on track for a weekly decline of over 2.5%. •  Solid US Nonfarm Payrolls beat forecasts, with 177K jobs created in April and the unemployment rate unchanged at 4.2%, lowering the chances of hawkish Fed rate cuts. •   Investors now discount 78 basis points of Fed rate cuts, falling from earlier forecasts, shifting sentiment away from safe-haven assets such as Gold. • US Treasury yields increased strongly, with the 10-year yield increasing nine basis points to 4.312%, putting additional pressure on Gold. • Optimism surrounding trade improved risk appetite in markets, following confirmation that China has acknowledged that the US is willing to restart trade talks. • The US Dollar Index (DXY) declined by 0.20%, in spite of more robust yields, as markets responded mixed fashion. • Gold is near major technical support around $3,200 and faces increasing risk of further declines to $3,167 and the 50-day SMA around $3,080 if selling persists. Gold prices slipped this week as investor sentiment changed in response to strong US economic data and better US-China trade relations. The US labor market reported unexpected strength in April, with Nonfarm Payrolls beating estimates and the unemployment rate holding firm. This firm economic performance prompted most market players to rethink their interest rate cut expectations from the Federal Reserve, as a more robust job market lessens the need for monetary easing. XAU/USD DAILY CHART PRICE CHART SOURCE: TradingView Meanwhile, global risk appetite improved after China’s commerce ministry said the U.S. was open to restarting trade talks. This newfound optimism in trade relations tempered demand for traditional safe-haven assets such as Gold, with investors more inclined to take on risk elsewhere. Therefore, Gold experienced some selling pressure as traders sought to lock in profits and rebalance their portfolios in relation to changing macroeconomic conditions. TECHNICAL ANALYSIS Gold (XAU/USD) could not sustain above the $3,250 level, declining after not being able to overcome resistance at about $3,270. Price action is weakening bullish power, with the sellers taking the lead as the Relative Strength Index (RSI) turns lower. A continued decline below the important $3,200 support level may pave the way for further losses, targeting the next support at $3,167, then the 50-day Simple Moving Average (SMA) at $3,080. On the other hand, if the buyers find their footing and drive the price back above $3,300, it may indicate a new attempt to test $3,350. FORECAST If bullish pressure returns, Gold (XAU/USD) may recover above the $3,200 level and target to regain resistance at $3,250. A clean break above this range would most likely draw fresh buying interest, which could drive prices towards $3,300. If that level is broken, the way could be open to challenge the $3,350 resistance, with $3,400 being a psychological level of importance. Increased geopolitical tensions, softer economic data, or dovish Federal Reserve signals would serve as catalysts for a move higher. On the negative side, a strong break below the $3,200 support level would speed up selling pressure, with Gold likely to move towards the next significant support at $3,167, which had served as resistance in early April. Persistent support for US economic metrics and eroding expectations for Fed interest rate cuts can also weaken demand for the metal further. Should the bearish strength continue, the 50-day Simple Moving Average (SMA) at around $3,080 will become the next downside target, triggering a further correction in the short term.

Read More
Commodities Gold

Gold Shines Bright: Prices Rally Amid Dollar Weakness and Trade Uncertainty

  • BY
  • April 19, 2025
  • 0 Comments

Gold prices ended the week on a high, gaining more than 2.79% as escalating trade tensions, geopolitical uncertainty, and a declining US Dollar stoked investor appetite for the safe-haven metal. Although hawkish rhetoric by Federal Reserve policymakers, such as Chair Jerome Powell and San Francisco Fed President Mary Daly, momentarily capped gains briefly, gold still managed to maintain above critical technical levels. The precious metal nudged a fresh all-time high of $3,358 before easing back marginally to $3,326, as market participants booked profits ahead of the long Easter break. Looking forward, all attention is fixed on US economic releases ahead, which will determine the next move of the dollar and the gold. KEY LOOKOUTS • Next week’s releases, which are the S&P Global Flash PMIs, Durable Goods Orders, and the University of Michigan final Consumer Sentiment report, will all be closely watched by traders and could decide gold’s next move. •  A crowded calendar of Fed speakers may provide new information on interest rate expectations, particularly following Powell’s recent hawkish comments that signaled ongoing policy tightening. • Gold is still in an uptrend, with $3,300 as pivotal support and the $3,350–$3,400 area providing the next resistance area. A break above would indicate new all-time highs. • Prolonged global trade tensions and geopolitical concerns are set to continue propping up gold safe-haven demand, despite the rise in real yields and Fed caution. Gold traders will continue to focus on some significant catalysts which may direct price action over the next few days. A hectic US economic calendar, with Flash PMIs, Durable Goods Orders, and the University of Michigan Consumer Sentiment survey, will provide new hints about the state of the economy and possible interest rate action. In addition, a series of speeches by Federal Reserve officials may back up or undermine the market’s existing rate assumptions, particularly in the wake of Powell’s recent hawkish comments. On the technical front, gold still trades above key support levels at $3,300, and a move through $3,350 may pave the way for a new record high. At the same time, unresolved trade tensions and geopolitical threats are set to continue keeping safe-haven demand active, supporting bullion beneath on-the-nose real yields rising. Gold traders will look to next week’s US economic releases and Fed speeches for new rate signals. Technical levels in the $3,300–$3,350 range continue to be key to direction. Geopolitical tensions and trade uncertainty should continue to support safe-haven demand. •  Gold prices rallied more than 2.79% this week, driven by a weaker US Dollar as global trade tensions and geopolitical risks escalate. •  XAU/USD reached a record high of $3,358 before profit-taking took prices back to $3,326 in the run-up to the extended Easter weekend. •  Federal Reserve’s hawkishness, including comments by Powell and Daly, capped further gains but not the trend for gold prices to the upside. •  US 10-year Treasury yields rose to 4.333%, with real yields increasing — posing short-term headwinds for gold prices. •  Technical perspective is bullish as far as prices remain above the $3,300 support level, with sights on $3,350 and $3,400 as the next goals. •  Investors look ahead to a packed week of US data, which includes Flash PMIs, Durable Goods Orders, and Consumer Sentiment, for new direction in the markets. •  Continued trade and geopolitical uncertainty continues to underpin safe-haven demand for gold despite rising real yields. Gold closed the week on an upbeat note as international trade tensions and geopolitical risks continued to push investors towards safe-haven assets. Even with assurances from the Federal Reserve on the robustness of the U.S. economy, ongoing worries surrounding global trade policy and possible slowdowns in the economy maintained the demand for gold firm. Market sentiment was also affected by increasing perceptions that the Federal Reserve’s interest rate stance could stay restrictive for a longer period, contributing to the risk-averse sentiment in global markets. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView Besides trade and policy issues, investor attention is also being diverted towards next week’s release of some of the most important U.S. economic indicators, which will provide further insight into the state of the economy. A busy slate, which includes manufacturing activity, durable goods orders, and consumer sentiment readings, is likely to frame market expectations for the period ahead. Geopolitical tensions and worldwide uncertainty, however, are expected to maintain gold as an asset of choice for risk-averse investors. TECHNICAL ANALYSIS Gold’s upmove is intact despite experiencing some profit-taking pressure after hitting its all-time high of $3,358. The precious metal still maintains above the crucial support level of $3,300, indicating that buyers are still present on pullbacks. A break above the $3,350 level for a sustained period could pave the way for another attempt towards the $3,400 psychological mark. While the Relative Strength Index (RSI) suggests overbought levels, the absence of substantial downside follow-through suggests limited selling interest at this time. So long as prices hold above the April 16 low of $3,229, the larger uptrend is likely to remain intact. FORECAST Gold’s upmove is firmly supported as long as prices are above the $3,300 level. A decisive break over $3,350 may see fresh buying strength, setting the stage for a possible retest of the record high at $3,358. If tensions in global trade and geopolitical uncertainties continue, safe-haven buying could intensify, driving gold to the next psychological level of $3,400. On the negative side, any inability to stay above the $3,300 support line may result in a more profound correction, with the next support being close to the April 16 low of $3,229. Increasing US real yields and Federal Reserve hawkish hints may dampen gold’s attractiveness in the short term, raising the chances of a pullback if economic reports surprise to the upside.

Read More
Commodities Gold

Gold Price Reaches Two-Week High as Trade Tensions, Fed Rate Cut Speculation Continue to Fuel Bullishness

  • BY
  • March 13, 2025
  • 0 Comments

Gold prices have continued to push higher, touching a two-week high as trade tensions, expectations of a Fed rate cut, and a lower US Dollar drive strong support. Concerns that the economic costs of President Trump’s tariffs on steel and aluminum imports would prompt the EU and Canada to respond with their own measures have fuelled demand for safe-haven assets such as gold. In addition, hopes for multiple rate cuts this year by the Federal Reserve amid a slowing labor market and decreasing inflation have only added to gold’s allure. With the US Dollar close to multi-month lows, technical considerations indicate that gold could go higher, potentially into its all-time high of $2,956. KEY LOOKOUTS • Concerns about increasing US President Trump tariffs and heightened trade tensions against the EU and Canada remain pushing safe-haven demand for gold. • Gold’s attractiveness grows with hopes for several Federal Reserve interest rate reductions this year under diminishing inflation and signs of moderation in the labor market. • A low US Dollar, closer to multi-month lows, contributes to further bullish support for gold, which has made it an even more sought-after asset for alternative assets investors. • Gold’s recent breakout above major resistance levels indicates additional upside potential, with the all-time high of $2,956 within reach if the momentum continues. Gold prices have been trending higher, fueled by fears of rising trade tensions, especially President Trump’s tariffs and retaliatory actions by the EU and Canada. These concerns have prompted investors to seek refuge in gold. Moreover, anticipation of several Federal Reserve rate reductions in the course of this year, driven by the evidence of deceleration in the labor market and decelerating inflation, has supported the attractiveness of gold further. The US Dollar, downgraded to multi-month levels, still supports gold, with it remaining an investor darling. With technical levels pointing toward ongoing momentum, gold is looking to test its record high, which further entrenches the bull case for the metal. Gold prices are rising, boosted by increasing trade tensions and Federal Reserve rate cut hopes. Weakness in the US Dollar is also boosting gold’s attractiveness, bringing it near its all-time high. • Increasing fears surrounding US tariffs and retaliation from the EU and Canada are compelling investors to seek safety in havens such as gold. • Wagers on several Federal Reserve rate reductions this year are supporting gold, as diminishing rates enhance the attractiveness of non-yielding assets. • A battered US Dollar, close to multi-month lows, is also lending support to gold, making it more appealing to investors. • Concerns over possible economic repercussions from trade wars and slowing inflation are still driving demand for gold. • A break above crucial resistance levels, such as $2,928-2,930, indicates additional upside potential, potentially reaching its record high of $2,956. • A lower-than-expected US inflation reading has boosted the rate cut expectations further, supporting gold’s price rally further. • While geopolitical uncertainties increase, gold continues to be a top choice as a hedge against market uncertainty, showing strong upward momentum in the short run. Gold prices have been trending higher on increased concerns about trade tensions, mainly President Trump’s steel and aluminum tariffs on foreign imports and resulting retaliations by the EU and Canada. Such fears of future economic slowdown are prompting investors towards gold, long regarded as a safe-haven investment when markets are uncertain. The growing market volatility from the current trade tensions has further driven demand for gold, as it is seen as a safe store of value amid geopolitical uncertainty. GOLD DAILY PRICE CHART CHART SOURCE: TradingView Besides trade worries, hopes for several Federal Reserve rate cuts throughout the year have also helped to increase gold’s appeal. With signs of a cooling labor market and easing inflation, many market participants are betting that the Federal Reserve will ease monetary policy, which supports non-yielding assets like gold. Meanwhile, a weakening US Dollar continues to provide favorable conditions for gold, as it makes the precious metal more attractive to investors looking for alternatives. Consequently, gold is in a solid uptrend, with investors following developments in the global economy very closely. TECHNICAL ANALYSIS Gold prices have demonstrated strong bullish momentum, overcoming key resistance levels, such as the $2,928-2,930 range, opening the way for additional potential on the upside. The price action suggests gold is ready to test its all-time high of $2,956, with oscillators on the daily chart still firmly in positive ground, indicating room for further extension without touching overbought levels. So long as gold remains above the pivotal $2,930 support level, the outlook is good, and the rising trend can extend towards new highs. FORECAST Gold prices are set to maintain their rising trend, driven by persisting trade tensions and a softening US Dollar. As investor worries regarding the economic effect of tariffs and the risk of slowing down remain, demand for safe-haven gold should be firm. Furthermore, if Federal Reserve rate-cut hopes become a reality, this will add support to gold, taking prices to the all-time high of $2,956. With technical indicators continuing to reflect positive momentum, gold may break resistance levels and experience additional gains in the near future. Conversely, however, if the geopolitical environment stabilizes and trade tensions subside, there may be a gold price pullback as investor interest in safe-haven investments dissipates. A better-than-expected economic recovery or more aggressive Federal Reserve tightening of monetary policy could also blunt the attractiveness of gold. In these situations, gold could come under pressure, dropping back towards support levels near $2,912-$2,900 and potentially even lower in the event of a shift in favorable market conditions toward risk assets.

Read More
Commodities Gold

Gold Prices Fall Below $2,910 on Increasing US Yields and Firm Job Growth

  • BY
  • March 8, 2025
  • 0 Comments

Gold prices declined below $2,910 as US Treasury yields bounced back after the release of the February Nonfarm Payrolls report, which revealed firm job growth though missing estimates. Federal Reserve officials, including Chair Jerome Powell, reaffirmed that the central bank is not in a hurry to cut interest rates, maintaining monetary policy intact for the time being. Although inflation is still a worry, Powell made it clear that the journey to 2% inflation will be rough. Central banks such as China’s PBoC and Poland’s NBP also continue to build up their gold reserves, giving some support to the metal. But increasing US real yields and declining geopolitical tensions capped gold’s upside potential. KEY LOOKOUTS • A US Treasury yield rebound can continue to put pressure on gold prices, particularly with increasing real yields affecting gold’s attractiveness. • The Fed’s reluctance to cut rates and Powell’s inflation remarks indicate that monetary policy will be tight, capping gold’s potential. • Softening geopolitical tensions, especially in Ukraine and Russia negotiations, may dampen gold’s safe-haven demand and pressure prices. • Continuous gold buying by large central banks such as China and Poland might offer price-supporting underlying fundamentals, counteracting general market pressure. Prices in gold are being pressured downwards by US Treasury yields recovering and real yields increasing, which has been historically inversely affecting gold’s attractiveness. The Federal Reserve remains cautious about rate cuts, with Chairman Jerome Powell emphasizing that achieving 2% inflation will be a “bumpy” process, suggesting that interest rates will stay steady for the time being. Easing geopolitical tensions, particularly in Ukraine and the Middle East, have also reduced the safe-haven demand for gold. But central banks, such as China’s PBoC and Poland’s NBP, keep on taking gold, which should lend some underlying support to the precious metal in spite of overall market difficulties. Gold prices are in pressure because US Treasury yields move higher and the Fed indicates a stable direction for interest rates. Although softening geopolitical tensions lower safe-haven demand, central bank buying, especially by China and Poland, lends some support to gold prices. • Gold drops below $2,910 as US Treasury yields recover, exerting downward pressure on the metal. • The February Nonfarm Payrolls report indicates consistent job growth, with 151K jobs created, though missing expectations. • Federal Reserve officials, including Jerome Powell, indicate no hurry to reduce rates, stressing the necessity of a cautious approach to inflation. • Powell reaffirms that the path to 2% inflation will be “bumpy,” maintaining monetary policy unchanged for the foreseeable future. • Ukraine-Russia progress and US pressure on Hamas lower gold’s safe-haven demand, capping gains for the metal. • The People’s Bank of China (PBoC) and Poland’s National Bank (NBP) have added gold reserves, with Poland purchasing the most since 2019. • US real yields, especially on 10-year TIPS, rise, presenting a headwind to gold prices by lowering its relative attractiveness. Gold prices are under pressure following increases in US Treasury yields and the Federal Reserve holding firm on interest rates. The latest US jobs report evidenced stable growth within the labor market with more joining the workforce while numbers fell short of expectations. Fed Chair Jerome Powell has indicated the central bank isn’t in any hurry to cut rates, given that the route to 2% inflation is uncertain and tough. This risk-averse policy stance has caused a more balanced economic outlook, taking away some of the gold’s attractiveness as a safe-haven asset. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView Concurrently, relaxing geopolitical tensions, especially between Russia and Ukraine, have reduced the need for gold as a safe haven from world uncertainties. Improvement in ceasefire negotiations, coupled with a reduction in tensions in the Middle East, has also dampened gold’s presence in investors’ portfolios. In the meantime, central banks such as China’s People’s Bank of China and Poland’s National Bank are still buying gold, offering some sustained support to the metal. These central bank interventions, together with a strengthening global economic outlook, could assist in stabilizing gold prices in the face of wider market pressures. TECHNICAL ANALYSIS Gold prices are met with resistance at the $2,930 level, with the Relative Strength Index (RSI) indicating that there is still room for additional upside. The metal has, however, been unable to climb above this mark, signifying a period of consolidation. A fall below the $2,900 level might indicate further downside risk, with the next significant support levels being the February 28 low of $2,832 and the $2,800 level. On the other hand, a break above $2,930 could pave the way for a possible rally towards $2,950 and even $3,000, if momentum keeps accelerating. The market is still in a tight consolidation, with the price action of gold very closely related to movements in US Treasury yields and general market sentiment. FORECAST If gold can break above the current levels of resistance, notably the $2,930 level, prices could have the potential to rise further. A sustained rally could have gold pushing through the $2,950 level, with a possibility of reaching the all-time high of $2,954. If momentum keeps gaining and overall market conditions are supportive, like further central bank gold buying and geopolitical tensions, the $3,000 mark could come into view. Also, if inflation remains in play or the Fed is signaling to postpone rate cuts, gold might attract even more strength as a hedge against economic uncertainty. On the negative side, if gold is unable to hold above the $2,900 level, further selling could be witnessed. A breakdown below this level would likely lead to a move towards the February 28 low of $2,832, followed by a possible test of the $2,800 support. Increasing real yields and a firmer US dollar can continue to depress gold, as it becomes less appealing relative to other assets. If the US economy continues to demonstrate strength, with the Fed still being aggressive on rates, gold may see further pressure, potentially pulling prices down in the near term.

Read More
Commodities Gold

Gold Price Forecast: Profit-Taking, Fed Rate Cut Speculation, and Market Trends With US Tariff Delays

  • BY
  • March 6, 2025
  • 0 Comments

Gold prices (XAU/USD) are seeing marginal profit-taking around $2,900 as US tariff tensions relax with a tariff delay on the importation of cars from Mexico and Canada. Despite this reprieve, tit-for-tat tariffs due in April still fuel safe-haven demand for the metal. While that is happening, investors are betting more on multiple Federal Reserve rate cuts as US economic indicators worsen, heightening recession fears. The European Central Bank’s interest rate decision and an important EU defense spending meeting contribute to the uncertainty in global markets. Technically, gold is still a “buy on dips,” with crucial support at $2,900 and resistance around the all-time high of $2,956. KEY LOOKOUTS • The postponement of US car import duties on Mexico and Canada provides relief in the short term, but April reciprocal tariffs still favor gold demand. • Market participants are factoring in several Fed rate cuts as US economic data deteriorates, making gold more attractive as a hedge against economic uncertainty. • The ECB will reduce interest rates by 25 bps, affecting market sentiment and gold prices along with wider economic policy changes. • Gold is bullish with major support at $2,900 and resistance at $2,956. Investors are eagerly observing price movement for breakouts or corrections. Gold prices are still an investment focus area with market trends adjusting to ease in US tariff tensions and swelling Federal Reserve rate-cut expectations. Though the pause on US auto import tariffs to Mexico and Canada is a near-term relief, retaliatory tariffs to be activated in April persist to drive safe-haven appetite. The multiple potential rate reductions by the Federal Reserve due to declining US economic indicators further heighten gold’s attraction. In the meantime, the expected 25 bps rate cut from the European Central Bank and a pivotal EU defense spending summit contribute to market volatility. With gold at around $2,900, pivotal technical levels such as support at $2,900 and resistance around $2,956 will be important for traders to monitor in this uncertain environment. Gold prices remain at $2,900 as US tariff delays give temporary relief, but future reciprocal tariffs maintain safe-haven demand. Traders expect several Fed rate cuts with deteriorating US economic data, while the ECB’s anticipated policy change contributes to market uncertainty. • The postponement of US car import tariffs on Mexico and Canada gives temporary relief, but April reciprocal tariffs maintain gold demand. • Despite some profit-taking, gold is still a sought-after hedge against economic and geopolitical risks. • Deteriorating US economic data have ignited speculation of a series of Fed rate cuts, making gold more attractive. • The ECB will likely lower rates by 25 bps, which could drive global market sentiment and gold prices. • Traders are reshuffling positions as bond markets already price in easing monetary policies. • The key support is at $2,900, and resistance around the all-time high of $2,956 will decide the direction for gold. • Global economic policy uncertainty and geopolitical risks may fuel swift price actions in gold. Gold continues to be a focus area in international markets as economic and geopolitical issues influence investor mood. The delay in US car import tariffs on Mexico and Canada has provided short-term relief, but the upcoming reciprocal tariffs in April keep uncertainty alive. Meanwhile, traders are closely monitoring the Federal Reserve’s stance as deteriorating US economic data strengthens the case for multiple interest rate cuts. As fears of economic slowdown abound, gold remains a go-to safe-haven asset, drawing investors seeking security in the face of uncertainty. XAU/USD Daily Price Chart Chart Source: TradingView At the global level, the European Central Bank’s upcoming interest rate decision is another layer of market attention, as policymakers balance economic threats and possible stimulus. Moreover, general geopolitical developments, such as talks on European Union defense expenditures and ongoing trade policies, fuel investor hesitancy. With central banks and governments navigating these economic challenges, gold’s use as a hedge against uncertainty is firm, as institutional and retail investors continue to attract steady demand. TECHNICAL ANALYSIS Gold prices are sustaining a robust bullish bias, and important technical levels are guiding the market movements.The $2,900 level is an important psychological support point, stemming any further bearish pressure. If gold sustains above this area, it may draw fresh buying interest, and prices may be directed towards the next resistance levels. On the higher side, the first resistance is at $2,934, followed by an important hurdle at $2,950. A breakthrough above such levels may initiate the door to the retesting of the all-time high price level at $2,956. In the case of accelerating selling pressure, $2,879 might become support. Analysts continue watching out for momentum levels and sentiment signals in assessing what may next follow gold’s price direction. FORECAST  Market conditions uphold the bullish trend for gold amid the metal’s safe-haven image. With increasing anticipation of several Federal Reserve rate cuts and continued uncertainty in the global economy, gold may experience additional upside action. If investor attitude continues to be risk-averse and inflationary fears linger, gold might overcome significant resistance points, potentially surpassing its historic high of $2,956. Moreover, any surprise geopolitical tensions or central bank dovish policies might additionally fuel demand, pushing prices even higher in the months ahead. On the negative side, gold prices can experience intermittent corrections as a result of profit-taking and changing market sentiment. If US economic indicators indicate improvement or the Federal Reserve becomes more hawkish, gold might suffer short-term pullbacks. Increased US dollar strength and higher bond yields can also pose headwinds, triggering dips to the $2,900 or even $2,879 support areas. Yet, until there is a dramatic change in international economic policies, every dip is likely to be perceived as a buying opportunity by long-term investors.

Read More
Commodities Gold

Gold Price Dives to Three-Week Low in Face of Steeper USD and Fed Policy Sentiment Uncertainty

  • BY
  • February 28, 2025
  • 0 Comments

Gold (XAU/USD) prices have fallen to a three-week low, closer to the $2,850 level, after a steeper US Dollar and anticipation of the Federal Reserve extending its hawkish policy pushed it lower. While there has been a risk-off market mood as well as lower US Treasury bond yields, the precious metal persists in its bearish trend for the second session in a row. Investors are waiting with bated breath for the coming US Personal Consumption Expenditure (PCE) Price Index, an important inflation gauge that may shape the Fed’s interest rate view and dictate gold’s short-term direction. Technicals also paint a bearish picture, with more room for decline if support levels are broken. KEY LOOKOUTS • A generally firmer USD continues to weigh on gold prices as investors expect the Federal Reserve to remain hawkish in the face of ongoing inflation fears. • The release of the upcoming US Personal Consumption Expenditure (PCE) Price Index is likely to impact Fed interest rate decisions and may determine the direction of gold in the near future. • Gold has dropped below the 23.6% Fibonacci retracement level, which could mean an extended decline if major support levels near $2,800 hold firm. • Investors are wary of global economic risks, such as possible inflationary pressures from Trump’s planned tariffs on Canadian, Mexican, and European Union imports. Gold prices continue to decline, hitting a three-week low of about $2,850 as a firmer US Dollar and the anticipation of a hawkish Federal Reserve dampen the market. Investors are eagerly awaiting the next US Personal Consumption Expenditure (PCE) Price Index, an important inflation indicator that may affect the Fed’s interest rate policy and, in turn, gold’s direction. Gold is still under selling pressure despite a risk-off mood and declining US Treasury yields. Technical indicators are signaling further weakness if major support levels, especially around $2,800, are broken. Moreover, market anxiety regarding possible inflationary impacts from Trump’s proposed tariffs against Canada, Mexico, and the European Union contributes to uncertainty in gold’s near-term direction. Gold prices declined to a three-week low around $2,850 due to a stronger USD and the anticipation of a hawkish Fed. Market participants are waiting for US PCE inflation data that could have implications for interest rates and gold’s direction. Technical indicators indicate more downside if support levels are breached. • XAU/USD declines around $2,850 as a stronger US Dollar weighs down on the market. • The US Dollar remains on the mend with expectations of a hawkish Federal Reserve. • Market participants look to the US Personal Consumption Expenditure (PCE) Price Index for guidance on the Fed’s next step. • Policymakers focus on taming inflation, dampening expectations of rate cuts. • Gold falls below the 23.6% Fibonacci retracement level, indicating further losses if major support around $2,800 breaks. • In spite of market uncertainties, gold finds it difficult to attract safe-haven demand. • Tariffs on Canada, Mexico, and the EU can affect inflation and guide gold’s direction. Gold prices continue to be pressured due to a firming US Dollar and anticipation of a hawkish Federal Reserve depressing market sentiment. The US Personal Consumption Expenditure (PCE) Price Index, which is a key inflation indicator, is in the spotlight as market participants seek guidance on future interest rate action. As inflation fears continue, Fed policymakers have signaled a prudent stance towards cutting interest rates, supporting the Dollar’s strength. Moreover, recent evidence of steady US economic growth also makes the argument for maintaining interest rates high, which diminishes the appeal of non-yielding assets such as gold. XAU/USD Daily Price Chart Chart Source: TradingView Apart from monetary policy, geopolitical and trade-related concerns contribute to the uncertainty. Investors are intently watching proposed tariffs by former US President Donald Trump on imports from Mexico, Canada, and the European Union, which can be inflationary in nature. These trade measures can influence global economic stability, shaping market sentiment for safe-haven assets. In the meanwhile, falling US Treasury bond yields and general risk-off market conditions have not gone far in favor of gold since traders are staying guarded before critical economic data and policy indications. TECHNICAL ANALYSIS Gold has fallen beneath significant support points, suggesting potential extension of its corrective decline. The price has fallen below the 23.6% Fibonacci retracement line of the rally from December through February, portending growing bearish momentum. Daily chart oscillators are establishing negative momentum, supporting the chance for further falls. If the sellers force the price down below the $2,855 level, the next major support is close to the $2,834 area, and then the 38.2% Fibonacci of $2,815-$2,810. A clear fall below the psychological $2,800 level could seal a bearish reversal. Conversely, a bounce above $2,867 might encounter resistance around the $2,885-$2,900 area, with continuous buying potentially revealing the all-time high of $2,956. FORECAST Gold may strengthen if future US economic releases, especially the PCE Price Index, indicate decelerating inflation, leading to hopes of a dovish Federal Reserve. A lower inflation reading can raise the chances of interest rate reductions, weakening the US Dollar and strengthening demand for gold as a safe-haven. Should gold recover the $2,867 resistance level, it may probe the $2,885-$2,900 zone, while a sustained breakout may propel it towards the $2,915 level. Stronger follow-through buying could take prices even closer to the lifetime high of $2,956 as buying interest picks up. Against the downside, gold will continue to be at risk if inflation does not recede and Fed officials continue to hint at a hawkish bias, underpinning the resilience of the US Dollar. A failure at levels above $2,855 would unleash a further bout of selling pressure that would push the price towards $2,834 support. A firm break beneath the $2,815-$2,810 zone would invite a slide toward the important psychological level of $2,800. If fear prevails, further losses look likely, that could push the price below $2,780, indicating an extended correction off recent highs.

Read More
Commodities Gold

Gold Records All-Time High as Trump’s Tariffs Rattle World Markets

  • BY
  • February 19, 2025
  • 0 Comments

Gold (XAU/USD) shot up to a new all-time high above $2,945 on Wednesday, extending its upward trend for the third straight day. The bull run was propelled by increased geopolitical tensions after US President Donald Trump re-emphasized his vow to implement 25% tariffs on auto, semiconductor, and drug imports. Naysays regarding US-Russia tensions, combined with market volatility pre-Federal Reserve’s FOMC Minutes report, contributed to the allure of gold as an insurance asset. Technicals present a possible challenge in the neighborhood of $2,951 and $2,966, though any dovish undertones the Fed may carry could further move gold towards psychological $3,000. There is still possible reversal, nonetheless, if sentiment responds to the economic data or Fed policy tilt. KEY LOOKOUTS • The threat of 25% tariffs on automobiles, semiconductors, and drugs inspires market uncertainty and pushes gold to all-time highs. • Federal Reserve January meeting minutes may guide gold’s performance, with speculators looking for clues on next interest rate actions. • Gold is resisted at $2,951 and $2,966, with potential to push further to $3,000 in case of continuous bullish momentum. • Safe-haven demand is boosted by US-Russia tensions and Trump’s hardline on Ukraine, supporting gold prices in the face of worldwide uncertainty. Gold’s record-setting sprint to a new all-time high of over $2,945 shows the market’s responsiveness to economic and geopolitical events. With Trump’s return to tit-for-tat tariffs shaking markets and uncertainty hanging over US-Russia relations, investors are hedging against volatility with gold. At the same time, the Federal Reserve’s next FOMC Minutes release provides further anticipation, as any sign of policy changes could influence market mood. Although gold’s upward trend is still intact, resistance levels around $2,951 and $2,966 may hinder further advances unless a dovish Fed or rising tensions provide further impetus for the rally. Gold rockets above $2,945 on Trump tariff plans and geopolitics. Market direction is now expected from the Fed’s FOMC Minutes. • XAU/USD rockets above $2,945, its third day of advance amidst global uncertainty. • The U.S. President reaffirms 25% tariffs on automobiles, semiconductors, and pharmaceuticals, heightening market fears. • Trump’s aggressive stance on Ukraine and US-Russia relations further contributes to investor uncertainty, supporting gold’s safe-haven status. • Minutes of the Federal Reserve’s January meeting may affect gold’s direction based on signals about interest rate policy. • Gold has strong resistance at $2,951 and $2,966 levels, with possibilities of a run to $3,000. • The 10-year benchmark yield is just shy of 4.56%, affecting the direction of gold as market players determine risk mood. • Koza Altin’s plan to make 40+ tons of gold in five years reflects the industry’s solid demand and prospects for growth. Gold’s rise to an all-time new high is a sign of increasing investor worries on geopolitical tensions and economic policies. The recent gold price boost follows U.S. President Donald Trump reaffirming his decision to impose 25% tariffs on automobile, semiconductor, and pharmaceutical imports. The decision has augmented concerns over trade disruption, and investors are resorting to the safety of gold as a safe-haven instrument. Furthermore, Trump’s tough statements on Ukraine have contributed to the uncertainty in the market, particularly after the initial negotiations between U.S. and Russian leaders failed to defuse tensions. In this context, investors and traders continue to pour into gold as a safe-haven asset against economic turmoil.  XAU/USD Daily Price Chart TradingView Prepared by ELLYANA Beyond geopolitics, market participants are also closely watching the Federal Reserve, as its upcoming FOMC Minutes release could shape future economic policies. While several Fed officials have signaled that interest rates remain at reasonable levels, inflationary concerns persist. Gold’s ongoing strength reflects the broader uncertainty in financial markets, where investors remain cautious about global economic trends. Furthermore, gold demand continues to be strong, with Turkish miner Koza Altin detailing plans to boost production over the next few years. With fears over trade, politics, and monetary policy escalating, gold is still favored as a hedge asset for stability and long-term protection. TECHNICAL ANALYSIS Gold’s move through $2,910 has bolstered bullish sentiment, taking prices to a new all-time high above $2,945. The next important resistance points are at $2,951 and $2,966, with a likely push to the psychological $3,000 if purchasing pressure remains. But in case gold meets with rejection near these levels, a retreat to near-term support at $2,921 could happen, and further weakness might follow at $2,906. The Relative Strength Index (RSI) is indicating conditions of overbuying, implying a possible correction or consolidation in the near term. The next FOMC Minutes release may serve as a pivotal catalyst, deciding whether gold continues its upward move or experiences a short-term retracement. FORECAST Gold’s historic rally above $2,945 has fueled speculation about whether the trend will persist or experience a pullback. If geopolitical tensions rise further, especially with Trump’s belligerent approach to tariffs and Ukraine, gold may experience further upside. Safe-haven demand continues to be robust as investors hedge against economic uncertainty, and any dovish tone by the Federal Reserve in its FOMC Minutes would further push gold towards the psychological $3,000 level. Moreover, ongoing inflation worries and robust central bank purchases across the globe could continue to lend support to gold’s bullishness in the coming days. To the downside, gold is exposed to a near-term correction in case market sentiment changes. The next FOMC Minutes may provide a more sobering interest rate outlook that might dampen gold’s demand. Should the trend in rising bond yields hold, investors will rotate out of gold to move into more attractive-yielding instruments. Lastly, profit-taking at record levels may even cause gold to pull back temporarily, particularly if gold is unable to gain traction above key resistance points. A stronger dollar or positive economic indicators may also weigh on gold, causing possible retracements in the upcoming sessions.

Read More
Commodities Gold

Gold’s Rally Gains Momentum on US-Russia Peace Negotiations and Market Sentiment

  • BY
  • February 18, 2025
  • 0 Comments

Gold maintains its rally for the second day running, reaching over $2,900 as market uncertainty and geopolitical tensions boost demand for the precious metal. The peace negotiations between US and Russian officials in Saudi Arabia have also boosted investor appetite, while Goldman Sachs raised its year-end forecast for gold to $3,100 per ounce. With inflation worries and changing Federal Reserve policy, traders are paying close attention to key resistance points, and a daily close above $2,910 could lay the groundwork for a new all-time high. But technical indicators, including an overbought RSI, point to a potential cooling-off period before additional gains.  KEY LOOKOUTS • Investors are intently following US-Russia peace negotiations in Saudi Arabia since any significant result has the potential to influence considerably the safe-haven status of gold and its price movement. • Remarks from Fed officials like Patrick Harker and Mary Daly can impact sentiment in the markets, especially about interest rate announcements and inflation projections. • A close above $2,910 on a daily basis may signal a bullish break, with bulls targeting $2,921 and the all-time high of $2,942 as important resistance levels. • Trump’s delays and exclusions in trade policy are generating economic uncertainty, reaffirming the position of gold as a value store amid world trade worries. Gold’s pace is strong with traders keeping close tabs on key geopolitical and economic events. US-Russia peace negotiations in Saudi Arabia are the primary point of interest, with any advancement having the ability to shift sentiment in markets. Comments by Federal Reserve officials on inflation and interest rates would also impact gold’s direction, particularly following Patrick Harker’s comments on leaving current rates alone. A close above $2,910 daily would affirm bull strength, with buyers targeting resistance at $2,921 and the all-time high of $2,942. At the same time, uncertainty over US tariff policies continues to fuel demand for gold as a safe-haven asset. Gold’s rally persists as geopolitical tensions and economic uncertainty fuel demand, with traders closely monitoring key resistance levels for a possible all-time high. US-Russia peace talks and Federal Reserve policies continue to be key drivers of market sentiment. • Gold extends rally to $2,910 amid geopolitical tensions, market uncertainty lifting demand for safe-haven precious metal. • Investors keep their eyes on developments in Saudi Arabia, where breakthroughs could revive gold’s appeal as a haven. • Public comments by Fed officials on interest rates and inflation may affect direction of gold, with traders keeping an eye for policy cues. • The gold forecast for the year-end has been raised to $3,100 per ounce by the investment bank, which attributes this to central bank purchases and ETF inflows. • A close above $2,910 on any given day will indicate more bullish momentum, and the major resistance levels are $2,921 and the all-time high at $2,942. • Trade policy delays and exclusions during Trump’s administration are building economic uncertainty, making gold’s appeal as a hedge stronger. • The Relative Strength Index (RSI) is signaling overbought levels, meaning traders can hold off for a dip in price before opening new positions. Gold remains in its bullish trend, breaking above $2,900 as investors clamor for the safe haven amidst geopolitical and economic tensions. US-Russia peace negotiations in Saudi Arabia continue to be a key area of interest, with any advancement having the potential to influence gold as a safe-haven asset. Moreover, Federal Reserve officials such as Patrick Harker and Mary Daly will also appear, giving future interest rate directions. Since the Fed is showing caution regarding inflation, market actors are paying particular attention to looking for signs which can guide the direction of gold. In between, Goldman Sachs has increased the year-end bullion target price to $3,100 an ounce on solid central bank buying and rising flows into bullion-backed ETFs. XAU/USD Daily Price Chart TradingView Prepared by ELLYANA Gold’s rally goes on as it crosses $2,900 on the back of geopolitical tensions and economic uncertainty. Investors are waiting with bated breath for US-Russia peace talks in Saudi Arabia, which may affect gold’s safe-haven demand. In addition, Federal Reserve officials’ future comments on inflation and interest rates might further shape market sentiment. Goldman Sachs’ updated year-end forecast of $3,100 an ounce emphasizes strong central bank demand and ETF inflows underpinning the metal’s bullishness. TECHNICAL ANALYSIS The technical position of gold continues to be bullish, with the price recovering main resistance at $2,910 and positioning the market for increased gains. Closing above this price on the daily chart would support the bullish move, with players targeting the subsequent resistance at $2,921 and the historic high of $2,942. The Relative Strength Index (RSI) is, however, showing signs of overbuying, warning that the market action could get overheated. This implies the possibility of a pullback or consolidation before another breakout. Target levels to monitor are $2,893, which has already held through the Asian session, and $2,881 as the next key downside target. A break below these would initiate a short-term correction, but overall momentum is strong for further upside. FORECAST Gold’s upward momentum persists as it remains above key resistance at $2,910, indicating further potential gains. Should prices close above this mark, the next resistance target would be $2,921, with $2,942 being the all-time high. Breaking above $2,942 would take gold towards Goldman Sachs’ updated year-end target of $3,100 per ounce on the back of robust central bank demand and safe-haven appetite. Moreover, persistent geopolitical tensions, such as the US-Russia peace talks and worldwide trade uncertainties, would lead investors to gold, further supporting its bullish trend. Gold has a potential downside risk even after the strong rally because overbought technical readings are present. The Relative Strength Index (RSI) indicates that the price is reaching dangerous levels of overheating, which may correct or consolidate before another increase. Immediate support is at $2,893, with $2,881 providing further support as buffers against a further drop. If selling pressure continues to build, then gold may fall towards $2,860 or even lower if Federal Reserve officials indicate a less

Read More
Commodities Gold

Gold Price Remains Steady Near $2,900: Market Sentiment, USD Influence, and Prospects Ahead

  • BY
  • February 17, 2025
  • 0 Comments

Gold price (XAU/USD) remains stable near the $2,900 level, buoyed by persistent fears of a global trade war owing to US President Donald Trump’s protectionist tariff measures. Though the precious metal gains from a softer US Dollar in the wake of disappointing retail sales figures, the market remains on guard as the Federal Reserve continues to stick to its hawkish stance. Optimism in US-Russia peace negotiations and positive risk mood have capped gains. Technically, gold’s positive bias holds good, with important resistance levels at $2,925 and an all-time high at $2,943, and key support levels of $2,885 and $2,855. Any solid break below $2,785 would lead to a sharp correction.  KEY LOOKOUTS • Fears over Trump’s possible trade tariffs, such as on autos, may propel safe-haven demand for gold, greatly affecting price action. • The Fed’s aggressive stance and anticipation of extended higher rates can affect gold’s attractiveness, with market now looking towards a possible rate cut in September. • USD movement, as driven by economic releases and Treasury yields, is still a pivotal determinant of gold’s short-term price direction. • Gold is resisted at $2,925 and $2,943, while significant support levels at $2,885 and $2,855 may determine the next market direction. Gold price is still sensitive to various issues, such as US tariff policy, Federal Reserve actions, and the US Dollar strength. Increased fear of Trump’s possible trade tariffs, especially on cars, has supported safe-haven demand for gold. In the meantime, sentiment remains skewed towards a September Fed rate cut over year-end, which is supporting market views. The price action of the US Dollar, fueled by Treasury yields and economic data, is instrumental in setting the near-term gold direction. Technically, resistance around $2,925 and $2,943 could cap advances, with support around $2,885 and $2,855 being the game-changers in stopping a steeper correction. Gold price fluctuates around $2,900, pushed by US tariff worries, Fed actions, and USD fluctuations. Important resistance at $2,925 and support at $2,885 are still pivotal. • Gold price holds steady at the $2,900 level, buoyed by safe-haven buying amid geopolitical and economic risks. • Trump’s proposed tit-for-tat tariffs and possible automobile tariffs stoke fear of a worldwide trade war, making gold more attractive. • The hawkishness of the Fed and anticipation of a rate cut delay influence gold’s short-term price action. • A bearish US Dollar, fueled by poor US Retail Sales figures, has temporarily boosted gold prices. • US-Russia talks, as well as increased tensions in Ukraine, bolster gold’s safe-haven demand. • The resistance is found at $2,925 and $2,943, and the key support areas are at $2,885 and $2,855, dictating price action. • A combination of risk-on mood and tension about inflation impacts gold’s ability to hold gains or correct lower. Gold price continues to be technically resilient, holding on to its bullish foundation around the $2,900 level. The Relative Strength Index (RSI) has cooled off from overbought levels, diminishing the likelihood of an immediate correction while continuing to support additional upside potential. Critical resistance levels to monitor are $2,925, followed by the all-time high around $2,943. A successful breakout above this area could stimulate fresh buying, continuing the uptrend and opening the door to higher levels. Moving averages also show a strong bullish trend, supporting the potential for additional gains if market conditions continue to be favorable. XAU/USD Daily Price Chart TradingView Prepared by ELLYANA On the downside, near-term support is at $2,885, followed by a more robust support area around $2,855 and $2,834. If gold falls below these levels, buyers might come in to support the uptrend, capping losses. Still, a clear-cut breakdown below $2,800 might turn sentiment to bearish side, causing a more extensive correction towards $2,785-$2,784. Participants also need to keep an eye on global economic news, specifically US interest rate expectations and geopolitics, that might fuel volatility and impact gold’s price movements in the near term. TECHNICAL ANALYSIS Gold price continues to be in bullish territory, sustaining itself at the $2,900 level. The Relative Strength Index (RSI) has declined from the overbought territory, indicating scope for further action, with other oscillators remaining in positive favor. Near-term resistance is at $2,925, with the all-time high around $2,943. A convincing breakout above this level would propel fresh buying momentum, extending the current uptrend. Support is seen at $2,885 on the downside, with firm demand likely at $2,855 and $2,834. A break below $2,800 with continued momentum would indicate a deeper correction, and possibly a bearish change in direction. FORECAST Gold price is well-set up for additional gains, with good technical support and safe-haven demand being major drivers. If the price holds above the $2,900 level, an initial drive up towards the $2,925 resistance level is anticipated. A clean breakout above this level can see gold challenge its all-time high of $2,943, and if the momentum continues, it might stretch further to $2,960-$2,975. Events like continued US Dollar weakness, heightened geopolitical tensions, or a dovish turn in the Federal Reserve stance may further accelerate the rally in gold. Gold’s positive outlook notwithstanding, downside risks are present. If the price is rejected at resistance levels and goes below $2,885, it may lead to a pullback to $2,855 and then to $2,834. A breach below the crucial psychological level of $2,800 would mark a change in sentiment, leading to a more significant correction to $2,785 or even $2,750. Improved US economic data, a US Dollar rebound, or decreased geopolitical tensions may cap gold’s upside and mount selling pressure in the short term.

Read More