Gold Price Retreats from Record High Amid Profit-Taking & Trade Fears by Amit Gupta, Kedia Advisory
Gold prices eased from their all-time high of $2,955 as investors took profits amid overbought conditions. Despite this pullback, concerns over US President Donald Trump's trade tariffs and their potential impact on global trade continue to support safe-haven demand. Inflation fears and a weakening US Dollar further limit losses for gold, which remains on track for its eighth consecutive weekly gain. Additionally, geopolitical tensions, including ongoing Ukraine-Russia conflicts, bolster gold's appeal. Technical indicators suggest dip-buying opportunities around $2,900, with support levels near $2,880. While traders anticipate further market consolidation, the overall bullish trend remains intact, keeping gold poised for potential new highs in the near term.
Key Highlights
* Gold price eases from a record high amid profit-taking.
* Concerns over Trump’s tariffs support safe-haven demand.
* Inflation fears and a weaker USD limit gold’s downside.
* Geopolitical tensions continue to act as a tailwind.
* Technical outlook signals dip-buying near $2,900 support.
Gold prices pulled back from their record high of $2,955, trading lower during the Asian session as investors took profits amid overbought conditions. Despite this retreat, the downside appears limited due to persistent concerns over US President Donald Trump’s tariff policies, which could spark a global trade war. These uncertainties keep safe-haven demand strong for gold, preventing a deeper correction.
Inflation concerns also remain a key factor supporting gold. Market expectations that Trump’s trade policies will drive inflation higher bolster the precious metal’s appeal as a hedge. Additionally, the US Dollar remains weak, hovering near its lowest level since December 10, further aiding gold’s resilience. Meanwhile, geopolitical instability, including escalating Ukraine-Russia tensions, continues to provide additional bullish momentum.
From a technical perspective, gold remains in an uptrend despite the recent profit-taking. The daily RSI suggests overbought conditions, but a strong support level near $2,900 could encourage dip-buying. If this level holds, gold may resume its bullish momentum, targeting resistance at $2,950-$2,955. However, a breakdown below $2,880 could lead to further declines toward $2,860-$2,855.
Traders now turn their focus to upcoming economic data, including US PMI prints, Existing Home Sales, and the Michigan Consumer Sentiment Index. These reports could provide fresh market direction and influence gold’s short-term movement.
Finally
Despite a short-term pullback, gold’s bullish trend remains intact, supported by trade war fears, inflation concerns, and geopolitical risks. Dip-buying near key support levels could drive another upward move.
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