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

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  • May 3, 2025
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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.

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Commodities Gold

Gold Staggers Despite Growing Appetite for Risk and Strengthening USD, but Bets on Fed Rate Cut Provide Comfort

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  • May 1, 2025
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Gold prices are now down for a third day in a row, having plunged to a two-week low, as a stronger US Dollar and better risk appetite—fuelled by a reduction in US-China tensions and positive trade rhetoric—tarnish the demand for the safe-haven metal. But the drawback looks limited as disappointing US macroeconomic data, such as a surprise GDP decline and lower inflation readings, drive expectations for dovish Federal Reserve rate cuts. These expectations, in turn, limit USD appreciation and give gold a cushion. Investors now look to important US economic reports, such as the ISM Manufacturing PMI and Friday’s Nonfarm Payrolls, for more definitive guidance on the Fed’s policy course and gold’s next direction. KEY LOOKOUTS •  Focus in the market is on ISM Manufacturing PMI and Friday’s Nonfarm Payrolls (NFP) report, which may have a major impact on the Fed’s interest rate trajectory and gold’s direction. •  Federal Reserve Rate Cut Expectations: Lower GDP and softening inflation add to expectations of a 100 basis point rate cut by year-end, which may cap USD strength and prop up gold prices. •  Geopolitical Updates: Any strengthening of geopolitical tensions, especially including Russia or US-China relations, might reactivate safe-haven demand for gold. •  Technical Levels under Scrutiny: A confirmed breakdown below the $3,229–$3,228 support level could trigger further downtrends towards $3,200 and $3,160, while attempts to recover are repelled at $3,260–$3,265 and $3,300. Multiple important factors that can influence the metal’s short-term direction are being closely observed by gold traders. All attention is now focused on forthcoming US economic data, especially the ISM Manufacturing PMI and the critical Nonfarm Payrolls report, which may impact hopes surrounding the Federal Reserve’s interest rate decisions. Softer inflation and a shock GDP contraction earlier have already fueled market expectations for deep rate cuts, potentially curbing additional gains for the USD and underpinning gold. Geopolitical threats, particularly escalating tensions between Russia and events in US-China relations, also continue to be in the spotlight as possible drivers of safe-haven flows. Technically, a persistent breakdown below the $3,229–$3,228 support area could pave the way for further losses, while resistance around $3,265 and $3,300 could limit attempts at recovery. Gold’s short-term prospects are contingent upon pivotal US data releases, specifically the Nonfarm Payrolls release, and shifting Fed rate cut expectations. Geopolitical uncertainty and USD strength will also be influential, with technical support at $3,229 continuing to be paramount for direction of price. • Gold prices are under pressure, near a two-week low due to firmer USD and risk-friendly sentiment. •  US-China trade optimism and easing tensions are lifting investor sentiment, lowering demand for safe-haven assets such as gold. •  US Dollar strength is suppressing gold, underpinned by positive sentiment and hawkish comments. •  Soft US macro data—such as a surprise contraction in GDP and weaker inflation—are fueling hopes of aggressive Fed rate cuts. •  Markets now expect as much as 100 basis points of rate cuts by the Federal Reserve through year-end, which could top USD gains and underpin gold. •  Geopolitical tensions, such as rising tensions in Eastern Europe, could give a safety bid and cap gold’s downside. •  Key technical levels to monitor are support at $3,229 and resistance at $3,265–$3,300, which will determine short-term price action. Gold still wanders through a geopolitical and macroeconomic maze, where market sentiment is influenced by a mix of economic instability and changing international dynamics. The recent relaxation of US-China tensions and upbeat trade talks have heightened investor optimism, limiting the attractiveness of conventional safe-haven assets such as gold. At the same time, improved US Dollar performance with supportive comments about international trade agreements has dampened demand for gold. This notwithstanding, gold is being underpinned by increasing fear about the US economy’s health, as demonstrated by a surprising GDP contraction and decelerating private sector hiring. XAU/USD Daily Price Chart Sources: TradingView Inflationary pressure also seems to be abating, with the most recent information indicating a deceleration in both headline and core inflation. These events have reinforced market expectations of further aggressive interest rate reductions by the Federal Reserve over the next few months. As market players adjust strategies to meet new economic data and central bank cues, gold still has some underlying support. At the same time, lingering geopolitical tensions, particularly relating to Russia and Eastern Europe, continue to introduce uncertainty that can maintain interest in the precious metal as a long-term hedge. TECHNICAL ANALYSIS Gold recently fell below the crucial support range of $3,265–$3,260, prompting a cascade of selling pressure and driving prices to a two-week low of $3,221. Although momentum indicators have begun to lose bullish momentum, a clear break below the next significant support at $3,229–$3,228 (50% Fibonacci retracement) would affirm a bearish continuation towards the $3,200 level and potentially the $3,160 zone. On the upside, any recovery attempts may face resistance near the $3,260–$3,265 zone, followed by stronger barriers around the $3,300 mark and the $3,348–$3,350 supply region, where renewed selling interest could emerge. FORECAST If upcoming US economic data, particularly the Nonfarm Payrolls report, reinforces expectations of Federal Reserve rate cuts, gold could find renewed support and begin to recover. A softer labor market or softer inflation numbers can heighten pressure on the Fed to cut policy, softening the US Dollar and making non-yielding assets such as gold more attractive. Gold prices in such a case can recover towards the $3,300 mark and even retest higher resistance levels if risk-off sentiment returns owing to geopolitical tensions or global economic issues. On the other hand, in case the US economic data surprise positively—indicating resilience in the labor market or more sticky inflation—market expectations of Fed rate cuts diminish, a stronger USD results, and gold comes under additional downward pressure. Continued absence of safe-haven demand on account of bettering risk sentiment, particularly following positive global trade updates, could also be responsible for further losses. If gold falls below the $3,229 support level decisively, it may lead to a deeper correction towards $3,200 and even the $3,160 region in

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Commodities Gold

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

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  • April 19, 2025
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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.

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Commodities Gold

Gold Stays Steady Above $3,000 Due to Tariff Uncertainty: Markets Wait to See Trump’s Hand

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  • March 24, 2025
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Gold prices stay firm at just above $3,000, firming at around $3,020 after a recent decline, as markets wait warily for the April 2 deadline for new U.S. tariffs in the Trump administration. Cues that there might be a switch from tariffs in general to specific sector-specific tariffs have caused relief as fears of a sweeping trade war abated. But underlying concerns remain, keeping pressure on gold. Also, activity in the gold sector, such as Gold Fields’ rejected bid for Gold Road Resources and Zijin Mining’s solid profit growth, reflects continued strength and investor appetite for bullion, fueled by economic uncertainties, tariff tensions, and rising central bank and ETF demand. Technical analysis shows significant support at $3,000, with traders keenly observing for any new developments that might push gold to new highs or induce further losses. KEY LOOKOUTS                                                 • Traders need to watch closely for any official word from the Trump administration on the scope and intensity of the proposed tariffs, as a change from broad to targeted tariffs could have a big impact on gold prices. • The near-term support at the psychological $3,000 figure is essential. Any prolonged break below this figure might spur further downside pressure, targeting next supports at $2,998 (S1) and possibly $2,975 (S2). • Monitor sector-specific news, including Gold Fields’ bid efforts and Zijin Mining’s strong earnings, that gauge overall market sentiment towards gold and might spur total bullish or bearish momentum. • Ongoing central bank buying activity and rising inflows into Gold ETFs will continue to be key gauges of underlying investor sentiment, which could propel longer-term bullion price trends in the face of geopolitical uncertainty. Investors are monitoring events surrounding the April 2 tariff deadline closely, as President Trump’s move to potentially abandon broad tariffs in favor of targeted, sector-specific actions has the potential to greatly impact market sentiment and gold price action. Technically, the key $3,000 support is still in focus, and any break of this level would be expected to increase downward pressure towards lower levels of support. Furthermore, recent corporate news, including Gold Fields’ failed takeover offer for Gold Road Resources and Zijin Mining’s record profits, underlines ongoing strength and investor appetite for the gold sector. Demand patterns from central banks and ETF inflows are also key barometers that investors will closely watch for evidence of ongoing bullish momentum or rising frailties in the gold market. Gold holds firm above $3,000, waiting for more detail about future U.S. tariffs that have a deadline of April 2. Investors watch closely for Trump’s next steps, company sector activity, and ETF demand to determine future price direction with ongoing market uncertainty. • Gold prices stabilize above $3,000 following recent volatility, now at around $3,020. • Markets look to the April 2 deadline for possible new U.S. tariffs, key to short-term gold action. • Trump administration weighs targeted tariffs rather than sweeping, broad-based action, calming some market fears. • $3,000 is still key technical support; a break below this level may set off further declines. • Gold Fields’ spurned bid for Gold Road Resources indicates continued consolidation in the gold industry. • Chinese mining group Zijin Mining reports record profits fueled by surging gold and copper prices, indicating optimistic investor sentiment. • Growing gold ETF and central bank investments continue to provide support for long-term bullion price support. Gold prices are flat around the critical level of $3,000 awaiting the impending tariff announcement by United States President Donald Trump, planned for April 2. Hints that it would switch to selective tariffs impacting particular industries or areas have allayed a degree of anxiety on the market while uncertainty remains present. Market players are more alert to the prospects of the adjustments in tariffs given that they hold the potential to greatly alter the dynamics of world trade as well as the performance of economies. XAU/USD Daily Price Chart Chart Source: TradingView Additionally, corporate activity within the gold sector indicates ongoing investor confidence and consolidation. Gold Fields recently proposed an acquisition of Australia’s Gold Road Resources, which was subsequently rejected, signaling strategic moves among key players in the industry. At the same time, China’s Zijin Mining posted record profits driven by greater world demand for gold and copper, echoing more general bullish sentiment toward precious metals in response to increased geopolitical tensions and economic uncertainties. Central banks and gold ETF investment also remain steady backers, further solidifying gold’s status as a safe-haven asset amidst unpredictable times. TECHNICAL ANALYSIS Gold is stabilizing right now just above the critical support level at $3,000, with the near-term pivot point at $3,023 serving as a short-term guideline for investors. The key resistance is at $3,046, and the all-time high at $3,057 may come into play if bulls reemerge. On the negative side, the $3,000 psychological level is still a key level; a break below that would trigger further selling pressure, with next support levels at $2,998 and $2,975. Market participants should watch these important technical levels closely, as they will most likely determine gold’s short-term price direction in the face of changing tariff news and market developments. FORECAST If President Trump’s government chooses to introduce more cautious, sector-level tariffs or otherwise indicates further weakening of trade policy before the deadline of April 2, then gold prices would likely see revived upward momentum. Also, renewed central bank demand and rising flows into Gold ETFs would sustain bullish sentiment that could push the prices back up to recent peaks of around $3,057. But if tariff tensions grow or uncertainty picks up, markets could witness growing selling pressure in gold, and prices could test critical psychological support levels around $3,000. A clean break below this crucial level, fueled by fresh doubts over broader economic ramifications or adverse corporate news, could prolong the downside, and prices could be pushed into lower support levels of around $2,975.

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Commodities Gold

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

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

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Commodities Gold

Gold Retreats On Quadruple Witching: Rally Halts Near $3,030 but Bullish Traction Remains Unscathed

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  • March 21, 2025
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Gold prices backed off on Friday, falling from their all-time highs during the turmoil of Quadruple Witching — a market phenomenon that involves the concurrent expiry of different futures and options contracts. Having earlier reached a new all-time high of $3,057, gold fell back to a level of about $3,030 in the European session, as investors practiced profit-taking. Even after the pullback, the yellow metal is still well-supported above the crucial $3,000 level, and geopolitical tensions as well as uncertainty in the global economy continue to support its allure. Analysts are still hopeful, with expectations that gold can rally further to the $3,500 level in the months ahead. KEY LOOKOUTS        • Gold is still firmly supported above the psychological $3,000 level despite the recent fall, which keeps the bull run alive. • Near-term resistance is at $3,042, followed by the new all-time high of $3,057. A breakout higher would set the stage for $3,074 and higher. • Ongoing violence in Gaza and Ukraine, and pending U.S. tariff releases, can continue to fuel safe-haven demand for gold. • Expiration of several futures and options contracts can produce near-term volatility, but also present strategic buying opportunities for investors. Gold’s recent fall to about $3,030 is in the midst of increased market volatility fueled by Quadruple Witching, providing a chance for profit-taking among traders. The overall outlook, however, remains positive as the precious metal continues to trade above the important $3,000 support level. Important resistance levels at $3,042 and the recent all-time high of $3,057 will be closely monitored, with additional upside potential towards $3,074 if the momentum picks up. At the same time, geopolitical tensions and imminent trade tariffs remain supporting gold’s safe-haven demand, maintaining investor appetite strong and a possible rally to $3,500 in the cards. Gold remains firm above the critical $3,000 mark even as it fell back after Quadruple Witching profit-taking. Geopolitical tensions and fears of a trade war keep bullish momentum intact, with the $3,500 target within reach. • Gold experiences a small pullback after setting a new all-time high, largely because of Quadruple Witching profit-taking. • The precious metal continues to be well-supported above the psychological $3,000 mark, reflecting sustained bullishness. • Middle Eastern and Ukrainian geopolitical tensions continue to fuel safe-haven demand for gold. • Trade war worries and future U.S. tariffs are other drivers of investor interest in gold. • Gold has produced solid gains in 2025, including 15 record highs so far this year and a 16% gain. • Institutional funds and pension plans are increasingly relying on gold as a safe bet. • Forecasts see additional gains, with some predicting that gold may rise to $3,500 amidst continuing global uncertainty. Gold remains a favored safe-haven asset, propelled by persistent geopolitical tensions and economic uncertainty worldwide. Investors are looking more and more to the precious metal in light of Middle East and Ukrainian conflicts, as well as fears of possible trade interruptions. The quest for stability during uncertain times has driven a robust rally this year, underscoring gold’s position as a safe store of value. XAU/USD Daily Price Chart Chart Source: TradingView To add to its popularity, institutional buying is also increasing interest in gold. Pension funds and big investment institutions have reported solid returns from their commodity exposure, including gold. For example, the Ontario Teachers’ Pension Plan recently recorded hefty gains, thanks in part to its commodity investments in gold. With analysts predicting even more elevated price targets, gold remains a magnet for individual and institutional investors looking for long-term safety. TECHNICAL ANALYSIS Gold’s recent action displays a healthy period of consolidation following its robust run-up. Despite the prices trimming some of the gains, overall structure remains positive with support holding strong and registering ongoing buying pressure. The market is experiencing customary profit-taking as the market normally experiences during periods like Quadruple Witching but significant resistance points are still reachable. As long as gold remains in a position above critical levels of support, the upward trend is going to keep on going, and the trader will have opportunities to get in on dips and participate in the general trend. FORECAST Gold will continue on its bullish path in the medium to long term due to ongoing geopolitical tensions, economic uncertainty, and growing institutional investor demand. With the analysts setting targets as high as $3,500, the metal continues to draw safe-haven flows. If global tensions escalate or economic worries deepen, gold may witness fresh buying traction, driving prices above recent all-time highs. Central bank buying and inflation pressures could also serve as added tailwinds to the metal’s rally. While there is a robust overall prognosis, gold is not exempt from downside risks. Short-term adjustments could happen as a result of profit-taking, volatility in the markets, or change in investor mood during significant financial events such as Quadruple Witching. An appreciating U.S. dollar, increasing bond yields, or relaxation in geopolitical tensions could short-term pressure prices. If gold falls below important support levels, it can induce a more serious correction, inducing caution among market participants. But such pullbacks will be considered as buying opportunities unless there is a significant change in broader market fundamentals.

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Commodities Gold

Gold Reaches Record High at $3,045 Before Fed Decision as Geopolitical Tensions Rise and the Market Remains Uncertain

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  • March 19, 2025
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Gold reached a new record high of $3,045 on Wednesday amid rising geopolitical tensions and market uncertainty in anticipation of the U.S. Federal Reserve’s interest rate decision. The rally was driven by disconcerting reports from Turkey and Ukraine, and fears of possible economic slowdown in the U.S. even with a temporary ceasefire deal between President Trump and President Putin. While gold’s momentum is still robust, analysts are cautioning of a potential pullback, particularly if the Fed indicates fewer rate cuts than anticipated. While markets wait with bated breath for Jerome Powell’s remarks and economic forecasts, gold traders are eagerly waiting for signals that would determine the next major move in the precious metal. KEY LOOKOUTS • The Fed’s interest rate decision and economic forecasts, which may influence the direction of gold in the subsequent sessions. • Political instability in Turkey and uncertainty in Ukraine are still backing gold prices as safe-haven demand continues to stay high. • Keep an eye on critical resistance levels of $3,048 and $3,063; a break above might spark a new wave of gold bullishness. • Gold’s strong rally could get a near-term correction if the Fed gives cues of less rate cuts or turns hawkish. Gold’s stellar rally to an all-time high of $3,045 is a reflection of increasing geopolitical tensions and increased investor wariness in anticipation of the U.S. Federal Reserve policy announcement. The metal’s safe-haven demand has been supported by political turmoil in Turkey and continued uncertainty in Ukraine, as market players look to the Fed’s interest rate outlook and economic forecasts for 2025 and beyond. A hawkish Fed or less-than-anticipated rate cut signals may provoke a short-term retreat in gold prices. Yet, technical resistance levels at $3,048 and $3,063 are still crucial to monitor, as a break above these levels would ignite more upside momentum. Gold reached a record high of $3,045 in the wake of increasing geopolitical tensions and before the key Fed interest rate decision. Investors now wait for cues on subsequent rate cuts, while technical resistance at $3,048 would decide the direction of gold prices next. • Gold rose to a record high of $3,045 on Wednesday, fueled by geopolitical tensions and market expectation. • Political instability in Turkey and ongoing uncertainty in Ukraine have bolstered safe-haven demand for gold. • Investors are keenly awaiting the Federal Reserve’s interest rate decision and economic forecasts for future policy guidance. • Any hawkish rhetoric from the Fed or lower rate cut expectations could lead to a short-term gold correction. • Technical resistance points at $3,048 and $3,063 may define further upside potential in gold prices. • Levels of support to monitor are $3,024, $3,010, and the psychological $3,000 level. • Gold’s rally may be overbought despite bullish sentiment, with traders wary of a potential pullback. Gold hit a new record high of $3,045 as investors grew increasingly nervous over increasing geopolitical tensions and global economic uncertainty. Prices rose as markets responded to important political events, such as the arrest of Istanbul’s mayor, a prominent opposition leader in Turkey, and persistent turmoil in Ukraine. These occurrences have bolstered gold’s reputation as a historical safe-haven asset, as investors turn to it for security in uncertain global headlines. XAU/USD Daily Price Chart Chart Source: TradingView To the uncertainty, attention now turns to the U.S. Federal Reserve, which will make its most recent interest rate decision and release new economic forecasts. While the market generally expects no change, expectations for future rate reductions have the potential to impact overall market sentiment. With a backdrop of nervous optimism and geopolitical tension, gold remains a focus as a hedge against prospective financial volatility and policy changes. TECHNICAL ANALYSIS Gold’s recent surge to an all-time high of $3,045 reflects robust bullish momentum in the market. The short-term attention now turns to critical resistance levels near $3,048 and $3,063, which may serve as prospective breakout areas in case of further pressure on the upside. On the downside, levels near $3,024, $3,010, and the psychological level of $3,000 are crucial checkpoints in the event of a pullback. While the trend remains positive, traders should stay cautious, as overbought conditions could lead to short-term corrections before the next leg higher. FORECAST Gold’s latest rally implies there is scope for further price rises in the immediate term, provided geopolitical tensions prevail or the Federal Reserve introduces dovish policy measures. A repeated breach above $3,045 could lead to the opening up of higher levels of resistance levels, and it is investor psyche that could bring prices towards the $3,063 levels or higher. Fresh fears over international economic stability as well as the demand for haven assets may yet continue to power bullish sentiment across the gold complex. Even with the aggressive rally, there is still potential for a short-term correction as gold begins to appear somewhat overbought. If the Federal Reserve leans more toward being hawkish or indicates fewer rate reductions than expected, it has the potential to place downward pressure on prices. In that case, gold could fall back towards important support levels at $3,024 or even flirt with the psychological $3,000 threshold. A more pronounced correction can then follow if sentiment in the larger markets turns away from risk aversion.

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Commodities Gold

Gold Soars to Record High on Middle East Tensions and Global Geopolitical Uncertainty

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  • March 18, 2025
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Gold reached a new all-time high of $3,028 as rising geopolitical tensions spark a demand for safe-haven assets. The increase comes after Israel pounded Gaza with airstrikes that signal the breakdown of a ceasefire agreement, stimulating concerns of wider regional war and retaliation by militant factions. Also, world markets are in suspense before a high-stakes telephone conversation between U.S. President Donald Trump and Russian President Vladimir Putin, with fears of sidelining Ukraine from peace negotiations. Soft U.S. economic data, upcoming Federal Reserve actions, and Germany’s anticipated defense spending increase further add to bullish momentum in gold, as investors look to higher levels with increasing uncertainty. KEY LOOKOUTS • Israeli attacks on Gaza bringing an end to the ceasefire agreement have increased market anxiety, prompting investors to seek refuge in safe-haven investments such as gold. • The imminent telephone conversation between U.S. President Trump and Russian President Putin has the potential to change global geopolitics, guiding gold’s future direction. • Weak U.S. retail sales and anticipated Federal Reserve interest rate stability are enhancing gold’s safe-haven status. • Gold has crossed major resistance levels with traders now looking to $3,030 as the next target and $3,200 as a possible medium-term milestone. Gold traders are factoring in the rising geopolitical tensions in the Middle East, specifically the consequences of Israeli attacks on Gaza and possible retaliatory measures that would boost further safe-haven demand. Market players are also keenly observing the result of the expected Trump-Putin phone conversation, which can have a sizeable impact on global risk appetite and investor sentiment. Moreover, Germany’s referendum on a large defense budget and the Federal Reserve’s policy direction in the next meeting are pivotal drivers of gold’s movement. Gold traders need to keep an eye out for increasing geopolitical tensions, particularly following the Israeli attacks on Gaza and Trump-Putin’s upcoming phone call. Attention is also focused on Germany’s defense budget vote and on the Fed policy stance, as both have the potential to continue fueling the trend. Major technical levels at $3,020–$3,030 are still pivotal for short-term direction. • Gold records a new all-time high of $3,028 as geopolitical tensions increase and safe-haven buying. • Israeli attacks on Gaza signal the collapse of the ceasefire, threatening wider regional war. • Investors turn to gold as a safe-haven commodity in times of global uncertainty and economic anxiety. • Trump-Putin telephone call hangs over the horizon, threatening to reshape the geopolitical landscape and affect gold prices. • German parliament to approve a $49 billion defense budget, which could give further impetus to the gold rally. • Weakening U.S. retail sales and dovish Fed policy lean favor rate cut expectations, underpinning gold demand. • Technical breakout still in play, with near-term resistance at key levels of $3,020 and $3,030 and support at $3,014/$3,007. Gold has again asserted its strength as a sound safe-haven instrument, hitting an all-time record in the backdrop of rising worldwide tensions. The recent Israeli bombardment of Gaza, marking the end of the ceasefire, has heightened concerns of a wider regional war, causing investors to flock to precious metals. The demand for gold in this instance mirrors increasing nervousness in international markets, where geopolitical tensions tend to push investors toward safer assets. As tensions in the Middle East escalate, gold remains in the spotlight as a value store in times of uncertainty. XAU/USD Daily Price Chart Chart Source: TradingView Joining the overall tension is a much-awaited phone call between U.S. President Donald Trump and Russian President Vladimir Putin which is of particular interest. Given that the conversation is set to be around the Ukrainian war, markets are preparing for any significant geopolitical change. In addition, Germany’s impending vote on a large defense spending bill is a sign of a larger trend of heightened military emphasis among world powers. Combined with soft U.S. economic data and uncertainty regarding future policy direction, these events are supporting gold’s status as a premier asset during periods of global uncertainty. TECHNICAL ANALYSIS Gold has exhibited healthy bullish momentum by overcoming prior resistance areas and posting a fresh all-time high. The rally shows sustained investor belief, with price action recording higher highs consistently. Experts indicate psychological levels of $3,020 and $3,030 can be important zones for the short term, while earlier resistance becomes support. As key institutions start to forecast targets around $3,200, sentiment is still bullish; however, traders should be careful of reversals, as overbought rallies tend to attract profit-taking and corrective action. FORECAST Gold remains strong in bullish motion. The precious metal is highly situated to rise further, particularly if turmoil in the Middle East intensifies or world powers are unable to achieve diplomatic solutions. Moreover, hopes of Federal Reserve rate cuts and higher defense spending by major economies may continue to drive investor appetite for gold as a safe-haven asset. Most analysts now believe that gold can test higher levels, with estimates looking toward the $3,100–$3,200 level in the medium term, driven by persistent market interest and supportive macroeconomic conditions. Even with the current rally, gold is not exempt from corrections. If geopolitical tensions subside or diplomatic developments occur—e.g., a fruitful Trump-Putin deal or a fresh Middle East ceasefire—investor psychology may move away from safe-haven assets. And if stronger-than-anticipated U.S. economic data comes out soon or the Federal Reserve hints at a more aggressive posture, gold may come under pressure. An abrupt shift in market positioning or profit-taking at higher levels can also induce short-term pullbacks, moving prices toward significant support areas and temporarily tempering the bullish trend.

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