Article by: ETO Markets
Gold prices (XAU/USD) are exhibiting mixed momentum near $…, consolidating after touching a record high of $…. The market sentiment remains cautiously bullish, with prices above the psychological $… mark. The ongoing global trade uncertainties, particularly President Trump's proposed automotive tariffs set for April, continue to underpin safe-haven demand. While the market anticipates potential Federal Reserve rate cuts in 2025, mixed signals from Fed officials regarding inflation outlook and policy adjustments are creating headwinds for further gains. The recent comments from Fed Governor Bowman about asset valuations' impact on inflation, along with strengthening U.S. Treasury yields, are supporting the U.S. Dollar, potentially capping gold's upside. Market participants are focused on upcoming economic data and Fed speeches for monetary policy clarity. The Empire State Manufacturing Index and scheduled FOMC member communications could provide fresh directional cues.
From a technical perspective, gold prices face immediate resistance at the recent high of $…, followed by the psychological $… level. A convincing break above this zone could open the path toward the $… region. However, the RSI at 73.08 indicates overbought conditions, suggesting some consolidation might be needed before any sustained upward movement. On the downside, initial support now lies at the psychological $… mark, with the 20-day SMA at $… serving as a crucial buffer. A breach below these levels could expose the 50-day SMA at $…, which aligns with a significant support zone. The MACD indicator shows positive momentum with the main line (55.96) above the signal line (46.99), though the spread suggests the potential for some near-term consolidation.
