Gold Price Near Record High: Market Awaits US PCE Price Index for Next Move
Gold prices have reached an all-time high of $2,800 as geopolitical tensions, trade war concerns, and expectations of rising inflation under US President Donald Trump’s policies continue to drive the price up. The Federal Reserve’s hawkish stance and rebounding US Treasury yields have capped further gains, as traders remain cautious ahead of the US Personal Consumption Expenditure (PCE) Price Index release, the Fed’s preferred inflation gauge. While sustained strength above $2,800 could trigger further bullish momentum, technical indicators suggest the possibility of a short-term consolidation or pullback. Key support levels lie between $2,773 and $2,720, with any break below these points potentially signaling a deeper correction. KEY LOOKOUTS • Traders await the US PCE Price Index, the Fed’s preferred inflation gauge, for insights into future monetary policy and gold’s next movement. • The Fed’s decision to maintain interest rates and its cautious approach to rate cuts could impact gold’s appeal as a safe-haven asset. • The tariff threats from Trump and the geopolitical events, such as Russia’s military actions, continue to fuel safe-haven demand for gold in uncertain markets. • A sustained break above $2,800 is likely to add more bullish strength, while the key support levels at $2,773 and $2,720 are likely to cap the downside risks. Gold prices continue to hover close to record highs, and the US PCE Price Index is being closely watched for further market direction. The stance of the Federal Reserve remaining hawkish, along with steady interest rates, means that its influence continues to deprive the precious metal of further upside. However, both global geopolitical unrest and US President Donald Trump’s announcement of trade tariffs have sustained gold’s safe haven appeal. Technically, any break above $2,800 could provide substantial upside momentum, while key support levels at $2,773 and $2,720 could act as price stabilizers during a pullback. In expectation of market movement based on tomorrow’s US PCE Price Index, gold sits at a hair’s breadth off record levels today. Geopolitical tensions further drive the urge for safe heavens, but from a technical angle, two figures stand between trading and those barriers: $2,800, and $2,773 • Gold tops all-time, at $2,800 – Inflation Fear, Geopolitical Tension Boosts Spot Price. • Release of US PCE Price Index, which happens to be the Fed’s preferred inflation gauge, will provide clues regarding future monetary policy. • The Fed remains tight-fisted and will not reduce the interest rates, hinting at no hurry in slashing borrowing costs, thus restricts the further upside in gold. • Trump’s tariff threats to Mexico, Canada and BRICS nations are creating uncertainty in the markets that increases gold as a safe haven commodity. • Russia’s military mobilizations and worldwide tensions are going to drive demand for gold as an avenue for hedging uncertainty. • A sustained move above $2,800 is set to trigger further upward steam, while key support levels at $2,773 and then $2,720 are crucial. • The modest recovery of US Treasury bond yields and US Dollar’s strength put slight pressure on this upward movement. Gold prices have hit an all-time high of $2,800, as the metal benefits from safe-haven demand amid rising geopolitical tensions and inflation concerns. US President Donald Trump’s renewed tariff threats on Mexico, Canada, and BRICS nations added to market uncertainty, reinforcing gold’s appeal as a hedge against economic instability. Additionally, investors are closely monitoring the US Personal Consumption Expenditure (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, for insights into future monetary policy. While the Fed has maintained a hawkish stance by keeping interest rates steady, traders remain cautious, waiting for fresh economic data before making significant moves. XAU/USD Daily Chart TradingView Prepared by ELLYANA Gold remains well-positioned for further gains if it sustains strength above the $2,800 mark. However, the daily Relative Strength Index (RSI) suggests overbought conditions, indicating a possible short-term consolidation or pullback. Key support levels are seen at $2,773 and $2,720, which could provide stability in case of a downturn. Meanwhile, a stronger US Dollar and a modest recovery in Treasury bond yields could put slight pressure on gold’s rally. Traders will now look for the US economic data and other global events that will determine gold’s next direction in the market. TECHNICAL ANALYSIS Gold is still in a strong uptrend, as the price continues to hold around its all-time high of $2,800. A break above this level decisively may lead to more bullish momentum and open the way for higher resistance levels. However, the daily Relative Strength Index is moving toward overbought territory and could see some short-term consolidation or pullback before another leg higher. Support zones are around $2,773 and $2,720, where buyers might step in to defend the uptrend. A break below these levels may see increased selling pressure, dragging gold down toward $2,700 or even lower. Traders are now watching price action closely to determine whether gold can sustain its bullish breakout or undergo a temporary correction. FORECAST Gold’s bullish momentum is intact and still holds above its record high at $2,800. If this current price action above the major psychological level can be held in support, further buying interest might appear, pushing gold on to the next resistance levels available at $2,820 and $2,850. Continued geopolitical tensions, worries over the trade policies of Trump, and anticipation of inflationary pressure would be the forces driving safe haven demand, hence further supporting the upward move. If the next US PCE Price Index report hints at an inflationary environment, gold might gain renewed attention as a hedge, and therefore strengthen its stance above the $2,800 mark. A weaker US Dollar along with sinking Treasury yields would further fuel the rally and drive it toward a potential test of $2,900 in the short term. Although gold has rallied convincingly during this time frame, weakness can be seen when these markets are overbought and when interference is noticed from external markets. The Relative Strength Index is nearing the overbought zone, which might usher a short-term correction or consolidation. If gold does not