Today’s analysis offers a comprehensive overview of the gold market, highlighting the key fundamental and technical factors shaping current trends. This report is designed to help investors navigate the market with confidence.
Gold prices are extending their rebound from a one-and-a-half-week low, gaining positive momentum for a second consecutive day on Thursday. Investor sentiment remains cautious amid lingering uncertainty over U.S. President Donald Trump’s trade policies and their potential impact on the global economy. Additionally, growing expectations of interest rate cuts by the Federal Reserve this year, coupled with subdued U.S. Dollar performance, are providing support for the non-yielding yellow metal in early European trading.
Gold prices broke out of their recent trading range to the downside, closing below the 50-day Moving Average on Tuesday. The 14-day Relative Strength Index (RSI) hovers around the neutral 50 level, suggesting indecision in momentum. A sustained move below $3,300 is essential to confirm further downside toward the monthly low of $3,250. The final key support for bulls lies at the 50% Fibonacci retracement level, near $3,232.
On the upside, any recovery would require a decisive break above $3,350. Beyond that, resistance is expected at the 23.6% Fibonacci retracement level of $3,379, followed by a potential challenge at the psychological $3,400 mark. In the short term, the Stochastic Oscillator stands at 69, while the RSI holds steady at 50, indicating a balanced but cautious market tone.
Stochastic Oscillator: A momentum indicator that compares a security’s closing price to its price range over a specific period. Readings above 80 typically indicate overbought conditions, while readings below 20 suggest oversold levels.
Relative Strength Index (RSI): A momentum oscillator that measures the speed and magnitude of recent price changes. Values above 70 signal overbought conditions, whereas readings below 30 indicate oversold territory.
In the dynamic and constantly shifting bullion market, staying updated with both technical and fundamental analysis is essential for informed decision-making. This report aims to deliver a balanced perspective to help investors navigate the complexities of gold trading.