Article by: ETO Markets

Gold prices have been struggling to maintain momentum after a late rebound from the $3,054 level, as fresh selling pressure emerged during the Asian session. This pullback comes amid a broader risk-off sentiment driven by growing concerns that President Trump’s imposition of reciprocal tariffs could slow global economic growth and potentially trigger a US recession. Despite these bearish elements, safe-haven demand for gold has cushioned further declines, supported by expectations that the Federal Reserve might soon restart its rate-cutting cycle in response to a tariffs-induced economic slowdown. This anticipated policy shift has kept the US Dollar near a multi-month low, further underpinning gold's appeal. Additionally, traders have been cautious ahead of the crucial US Nonfarm Payrolls report, with other economic data—such as a decline in the ISM Services PMI and a slight drop in new unemployment claims—adding to the market uncertainty. Overall, while gold faces some selling pressure and repositioning trades, the combination of safe-haven demand and supportive economic fundamentals is likely to prevent a significant corrective slide from its recent highs. 

From a technical perspective, gold appears to have a key support level near the $…–… horizontal zone—coinciding with the 100-period SMA—which is critical for short-term traders. A sustained break below this level could trigger further technical selling, pushing prices down toward the $… psychological level. Conversely, on the upside, the $…–… resistance zone serves as an immediate hurdle, followed by resistance at approximately $… and the all-time peak around $…. Overcoming these resistance levels could spur bullish sentiment and extend the recent four-month uptrend in gold prices.