Article by: ETO Markets
Gold prices are currently hovering near historical highs, trading around $…, which reflects a robust bullish trend. Despite a modest rebound in the U.S. dollar and some risk-on sentiment in the markets, gold’s upward momentum remains largely intact, underpinned by persistent safe-haven demand. News data indicates that gold is fluctuating near its all-time peak, supported by market expectations of uncertainty and accommodative monetary policies. Key drivers of this upward movement include uncertainties surrounding U.S. policy, particularly threats from the Trump administration to impose 200% tariffs on European goods, which have heightened trade war fears and bolstered safe-haven flows. Geopolitical tensions also play a significant role, with Israel’s extensive strikes in Gaza. Moreover, expectations of Federal Reserve rate cuts—potentially 25 basis points in June, July, and October—continue to weaken the dollar and boost the allure of non-yielding gold. However, the bullish outlook faces some headwinds. Market sentiment remains cautious, with investors eagerly awaiting the outcome of the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, spanning two days, which could provide clearer guidance on future interest rate trajectories.
From a technical perspective, gold (XAUUSD) has solidified its position above the critical psychological level of $…, currently consolidating around $…, indicative of strong upward momentum. Historical data up to the March 14, 2025, close of …, coupled with the latest trading price of approximately $… on March 18, 2025, shows gold reaching an all-time high of …. Regarding support and resistance, gold’s proximity to its historical peak places the next psychological barriers at $… or $…, though news reports do not specify higher resistance levels. UBS forecasts a potential climb to $…. Despite overbought signals from RSI and Stochastic, the overarching uptrend persists, with the breakout above $… and its subsequent hold signaling continued dominance by bulls. Any retreat to support zones like $… to $… could present buying opportunities, though short-term traders should exercise caution against chasing highs given the elevated RSI.
