Today’s analysis offers a detailed examination of the gold markets, highlighting the fundamental and technical factors shaping current trends. Our report is designed to equip investors with the insights necessary to navigate these markets confidently.
Gold extends its upward momentum from late last week, trading above the $3,360 mark per troy ounce, supported by strong demand for safe-haven assets. Persistent trade uncertainties continue to fuel a risk-off sentiment among investors, providing additional support to the precious metal. In a significant escalation of the trade war, US President Donald Trump issued notices to trading partners this week, heightening concerns about a global trade conflict. This development remains a key driver behind ongoing safe-haven flows into gold.
Continued buying above the $3,333 horizontal barrier confirms a breakout past the 100-period Moving Average on the 4-hour chart. Along with mildly positive oscillator signals, this sets the stage for further near-term gains, potentially pushing gold toward the next key resistance around $3,379. Momentum could extend even further, enabling the XAU/USD pair to challenge the $3,400 level.
Conversely, a drop below the $3,333 support may attract dip-buyers, helping to cap losses near the $3,300 round number, followed by support in the $3,280–$3,250 range. The short-term Stochastics Oscillator currently stands at 91, while the Relative Strength Index (RSI) is at 55.
Stochastics Oscillator: Measures momentum by comparing the closing price to its price range over a specific period. Readings above 80 indicate overbought conditions, while readings below 20 suggest oversold conditions.
Relative Strength Index (RSI): Assesses price changes to identify overbought or oversold levels. A reading above 70 signals overbought conditions, whereas below 30 indicates oversold.
In the intricate and constantly evolving bullion markets, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. Our report aims to offer a balanced perspective to help investors navigate the complexities of gold trading.