Gold prices remain firm near multi-month highs, driven by safe-haven demand amid global trade uncertainties and expectations of rate cuts by the Federal Reserve. The uncertainty surrounding US President Donald Trump’s trade policies, coupled with fears of a fresh trade war, has boosted the appeal of the yellow metal. While a modest recovery in the US Dollar and rebounding Treasury yields pose minor headwinds, the overall bullish sentiment persists. Technically, a breakout above key resistance levels suggests further upside potential, with any corrective pullback likely viewed as a buying opportunity. The outlook remains favorable for gold, with bullish traders eyeing a potential challenge to the all-time high.

KEY LOOKOUTS

• Trade war fears and geopolitical uncertainties continue to drive investors towards gold, solidifying its status as a safe-haven asset amid global market volatility.

• Expectations of two rate cuts by the Fed this year boost gold’s appeal, as lower interest rates reduce the opportunity cost of holding the non-yielding metal.

• A break above $2,750 resistance may further intensify the bullishness of the market, and crucial support is seen near $2,720 and $2,690.

• The Small bull recovery in the US Dollar may cap gold’s gains. Generally, dollar volatility is going to be a key watch for short-term direction.

The gold market continues to hold near multi-month highs, supported by a global flight to safety amidst rising geopolitical concerns and a potential trade war. The potential for the US Federal Reserve to cut interest rates this year has also boosted the demand for gold, as non-yielding assets are favored under lower interest rates. A modest recovery in the US dollar and rebounding Treasury yields pose temporary headwinds, but overall sentiment remains bullish. Technically, a decisive breakout above the $2,750 resistance could pave the way for further gains, while support levels near $2,720 and $2,690 are key to sustaining the positive momentum.

Gold prices remain near multi-month highs, supported by safe-haven demand and expectations of Fed rate cuts. A breakout above $2,750 could signal further gains, while $2,720 acts as key support.

• Gold benefits from global uncertainties and trade war fears, attracting investors as a reliable safe-haven asset.

• Expectations of two rate cuts this year enhance the appeal of gold by lowering the opportunity cost of holding the non-yielding metal.

• Concerns over US trade policies and global trade wars drive sustained demand for the yellow metal.

• A modest recovery in the US Dollar poses minor resistance to gold’s upward momentum.

• A breakout above the $2,750 mark could trigger further bullish momentum in gold prices.

• Price corrections may find support near $2,720 and $2,690, limiting potential downside risks.

• Positive oscillators on the daily chart and a breakout through resistance zones point to continued bullish sentiment for gold.

Gold prices remain resilient near multi-month highs, driven by robust safe-haven demand amid escalating geopolitical uncertainties and trade war fears. The concerns of markets over US President Donald Trump’s trade policies, including probable tariffs, continue to fuel interest in the yellow metal. Secondly, expectations for the Federal Reserve to cut twice this year support gold, as less interest reduces the opportunity cost to hold non-yielding assets. Despite a moderate bounce in the US Dollar and resurging US Treasury yields, the underlying remains conducive for more upside for gold prices.

XAU/USD Daily Price Chart.

Source: TradingView Prepared By ELLYANA

Gold prices continue to trend upwards, boosted by strong safe haven demand amid concerns of a global trade war and the anticipation of a Federal Reserve rate cut. The recent breakout above the $2,720 resistance zone has reinforced bullish sentiment, with $2,750 emerging as the next critical level to watch. While a modest recovery in the US Dollar and rebounding Treasury yields may temporarily cap gains, the overall outlook remains positive. Technical indicators suggest room for further upside, with any pullbacks likely finding support near $2,720 and $2,690. Traders remain optimistic about a potential challenge to the all-time high of $2,790.

TECHNICAL ANALYSIS

From a technical perspective, gold prices have broken through key resistance levels, signaling strong bullish momentum. The recent breakout above the $2,720 supply zone acts as a trigger for further upside, with $2,750 emerging as the next significant resistance. The oscillators on the daily chart are still firmly in positive territory and show no signs of being overbought, which opens up more room for further gains. The key support levels are located near $2,720 and $2,690, and any corrective pullbacks are expected to attract buying interest. A sustained move above $2,750 could pave the way for gold to challenge the all-time high of $2,790, keeping the bullish outlook intact.

FORECAST

Prices for the yellow metal will likely remain positive, influenced by safe-haven demand due to continuing geopolitical uncertainty and trade war tensions. The non-yielding metal is also likely to be further supported by potential cuts from the Federal Reserve, as they reduce the opportunity cost of holding gold. Technically speaking, a follow-through above $2,750 may provide room to surge all the way up toward the record at $2,790 as more bullish oscillators will also leave much more upside left to come. The metal should see renewed interest to purchase as gold attracts the bullish capital on further rallies into such an unpredictable market period.

Positive drivers notwithstanding, the rebound in the US Dollar and ongoing recovery in US Treasury yields could dampen the upside a bit in the short term, unless the support above the $2,720-$2,690 range can be sustained. If that breaks down, technical selling would ensue, taking the price all the way to the $2,660 zone. Other downside risks will arise if the risk-on environment can intensify from lower tensions or more positive than expected economic data. In such a scenario, prices of gold would retrace back towards the $2,625 confluence, being a critical juncture that forms the 100-day EMA and an ascending trendline – which may act as a decisive point for determination of the future directional move.