IGI Logo

Gold prices continue to trade above the $2,900 mark, supported by concerns over a potential global trade war triggered by US President Trump's tariff threats. The non-yielding metal also benefits from expectations that the Federal Reserve may cut interest rates further this year, bolstered by weak US Retail Sales data. While a modest uptick in the US Dollar and Treasury bond yields has capped gains, the safe-haven demand for gold remains strong. Technical indicators suggest that gold could face resistance near $2,925, but the outlook remains bullish as long as the price stays above key support levels.

Key Highlights

* Gold price holds steady above $2,900 amid trade war fears.

* Expectations of further Fed rate cuts boost gold demand.

* A modest USD uptick caps gold's upward movement.

* Gold faces resistance near $2,925 and all-time highs.

* Safe-haven buying remains strong despite technical resistance.

Gold prices continue to trade with a mild positive bias above the $2,900 level, driven by growing concerns over a potential global trade war sparked by US President Trump’s tariff threats. The safe-haven demand for gold is strong, as investors seek a refuge amid the uncertain trade environment. This comes alongside expectations that the Federal Reserve may reduce interest rates further in response to disappointing US Retail Sales data.

Despite the supportive factors, a modest rebound in US Treasury bond yields and a slight uptick in the US Dollar have capped the gains in gold prices. The USD has snapped its three-day losing streak, which could limit aggressive bullish moves in the XAU/USD pair. However, gold remains underpinned by uncertainty surrounding Trump’s trade policies, which continue to fuel haven flows.

Technically, gold has entered a range-bound phase after its recent surge to record highs. The daily chart shows oscillators in positive territory, signaling that the bias is still to the upside. However, gold faces resistance near the $2,925 zone, with the all-time high of $2,942-$2,943 marking a key hurdle. Any further pullback towards the $2,860-$2,855 area could present a buying opportunity, with strong support seen near $2,834.

Finally

Gold’s outlook remains bullish, driven by trade war fears and Fed rate cut expectations. A break above $2,925 could signal further upside, while support levels provide opportunities for buyers.

Above views are of the author and not of the website kindly read disclaimer