Today’s analysis offers a comprehensive examination of the gold markets, providing insights into the fundamental and technical factors shaping current trends. Our report is designed to arm investors with the knowledge required to navigate these markets with confidence.
Gold gained positive momentum on Monday, driven by continued weakness in the USD. Concerns over Trump’s tariffs further support the safe-haven appeal of the XAU/USD pair. Both fundamental and technical factors suggest the potential for further gains. After recording eight consecutive weeks of gains, gold begins a new week on a positive note, bolstered by the ongoing weakness in the US Dollar (USD) and US Treasury bond yields. Traders also seem inclined to take profits on gold’s record rally ahead of the upcoming US-Russia talks and the release of the Fed’s January meeting minutes.
On the daily chart, gold prices have held above the rising trendline support at $2,885. The 14-day Relative Strength Index (RSI) has pulled back from overbought levels and is now trading in the bullish zone, around 66. If the rebound continues, gold buyers will target the record high of $2,943. Before reaching that level, the February 12 high of $2,909 may test bearish sentiment. The next key resistance is at the $2,970 level. If sellers manage to break the February low of $2,864 decisively, a fresh downside move could push gold toward the $2,850 psychological support. Further declines could bring the 21-day Simple Moving Average (SMA) at $2,822 into focus. The Stochastic Oscillator is at 65, and the Relative Strength Index is at 66.
In the dynamic and constantly evolving bullion markets, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. Our report aims to provide a well-rounded perspective to help investors navigate the complexities of gold trading.