Today’s analysis offers a comprehensive examination of the gold markets, highlighting the key fundamental and technical factors shaping current trends. Our report is designed to provide investors with the insights necessary to navigate these markets with confidence.
Gold prices have pulled back from near their all-time highs, but the downside appears limited. Concerns surrounding Trump’s trade tariffs and the potential for a global trade war are expected to provide support for bullion. The prevailing bearish sentiment toward the USD may also help cap losses for the XAU/USD pair. The Minutes from the Fed’s meeting on Wednesday reinforced its cautious stance, revealing that “many participants noted the committee could maintain a restrictive policy rate if the economy remains strong and inflation stays elevated,” particularly in light of Trump’s trade policies. Persistent expectations for two rate cuts by the Fed in 2025 continue to support the sentiment surrounding gold, which remains a non-yielding asset.
Gold prices have dropped after failing to hold above the $2,950 psychological level on a daily closing basis. The 14-day Relative Strength Index has returned to the bullish zone, indicating a potential “buy-the-dips” opportunity for gold. A sustained break above the $2,950 resistance could reignite the record rally, with the next key resistance levels at $2,970 and the $3,000 mark. On the other hand, a further pullback could test the $2,900 level, and a break below that may target the February 14 low of $2,877. A solid move beneath this level could trigger a new decline toward the $2,850 psychological support.
In the dynamic and ever-changing world of bullion markets, staying informed through both technical and fundamental analysis is essential for making well-informed investment choices. Our report aims to offer a balanced perspective to guide investors through the complexities of gold trading.