Article by: ETO Markets
Gold has spent the week consolidating its position just shy of the $… threshold, a level that carries both psychological and historical weight. The metal’s resilience owes much to a softening U.S. economic backdrop. Data released on March 12 showed the core Consumer Price Index (CPI) rising by a modest 0.2% month-over-month, undershooting the anticipated 0.3%, while the annual CPI eased from 3.0% to 2.8%. The next day, the core Producer Price Index (PPI) surprised to the downside, falling 0.1% against expectations of a 0.3% gain. Meanwhile, initial jobless claims dropped to 220,000 from 222,000, beating forecasts of 226,000, hinting at a cooling labor market. Together, these figures bolstered speculation of multiple Federal Reserve rate cuts in 2025, pressuring the U.S. dollar—whose index (DXY) hovered around 104.00 but struggled under the weight of dovish bets—and enhancing gold’s allure as a non-yielding asset. Geopolitical currents further gilded gold’s appeal. The ongoing Russia-Ukraine conflict kept tensions simmering, while U.S. President Donald Trump’s threat of 200% tariffs on European wines and champagnes stoked fears of a broader trade war. Though a temporary exemption for Canadian and Mexican goods under the USMCA offered some relief, the specter of economic disruption reinforced gold’s safe-haven status, keeping prices elevated.
From a technical perspective, gold’s chart tells a story of cautious optimism. Having broken through the $…-$… resistance zone earlier this week, it tested the $… level before eyeing $…. Key support now lies at $… and $…; a breach below $… could see prices retreat to $… or even $…, a level that aligns with recent swing lows. On the upside, a decisive move above $…, if sustained, might propel gold past $…, with room to climb higher. The 14-day Relative Strength Index (RSI) at 66.75 nears overbought territory, suggesting a potential pause, but the MACD’s bullish crossover—main line at 31.45 above the signal line at 28.01—signals that upward momentum persists for now.
