Daily Price Outlook
Gold prices (XAU/USD) continue to show strong bullish momentum, trading above the $2,910 level for the second consecutive day.
On Tuesday, the precious metal reached a high of $2,915, attributed to growing fears of a potential global trade war. US President Donald Trump’s threat to impose reciprocal tariffs has sparked a surge in demand for safe-haven assets like gold, pushing its price higher.
Moreover, the ongoing speculation about possible Federal Reserve interest rate cuts in the near future is further enhancing gold's appeal. Although the market faces ongoing uncertainty, gold remains a long-lasting choice for investors seeking stability in volatile times.
US Dollar Recovery Caps Gold Gains Amid Geopolitical Developments and Fed Rate Cut Speculation
On the US front, the broad-based US Dollar has seen a slight recovery, which has capped gold’s price gains, as a stronger dollar diminishes the appeal of gold as a safe-haven asset. However, the dollar’s rebound is attributed to positive geopolitical developments, including the delay in Trump’s tariffs and ongoing diplomatic talks to resolve the Russia-Ukraine conflict.
Although the US Dollar has gained strength, the anticipation of a Fed rate cut remains a significant driver for gold’s recent upward momentum. Traders are increasingly pricing in rate cuts in September or October, especially after the release of mixed US economic data
Geopolitical Tensions and US Tariff Threats Support Gold Prices Above $2,900
On the geopolitical front, global trade tensions, particularly US President Trump's threat to impose tariffs on automobiles starting April 2, continue to support demand for gold as a safe-haven asset. This is part of a larger strategy to impose tariffs on countries that maintain duties on US imports.
Although there is hope that the tariffs may be delayed and peace talks between Russia and Ukraine could ease tensions, the ongoing uncertainty in the geopolitical landscape is keeping gold supported above the $2,900 level.
Traders are keenly watching upcoming economic data, including the Empire State Manufacturing Index, which could provide further insight into the US economy's health. Moreover, speeches from key Federal Open Market Committee (FOMC) members may create new trading opportunities for gold.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,913.89, up 0.04% in the session, maintaining its bullish momentum as the metal hovers above key support levels.
The price remains firmly above the pivot point at $2,905.41, indicating a potential continuation of the uptrend. The 50-day EMA at $2,905.85 is acting as dynamic support, reinforcing buyers' control over the market.
Immediate resistance is seen at $2,935.54, with further upside targets at $2,954.97 and $2,974.92. A break above these levels could fuel a rally toward the psychological $3,000 mark.
Conversely, immediate support stands at $2,887.52, with deeper floors at $2,864.58 and $2,834.27, which could attract buyers in the event of a pullback.
From a technical standpoint, gold's consolidation above $2,905 suggests growing bullish sentiment. The metal remains in an ascending channel, with higher lows indicating sustained demand. However, a break below $2,887 could shift momentum, exposing the asset to further downside.
Given ongoing macroeconomic uncertainties, gold traders should watch for a breakout confirmation above $2,935 to validate the next leg higher. If sellers regain control below $2,887, a retracement toward $2,864 may follow.
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