Article by: ETO Markets

Gold prices (XAU/USD) have been rising for the second consecutive day, reaching their highest level since November 6, around $…. This is largely driven by US President Trump's tariff comments, which are increasing demand for safe-haven assets like gold. Additionally, declining US Treasury bond yields, driven by expectations that the Federal Reserve (Fed) will cut interest rates twice this year, are supporting the yellow metal. Despite this, expectations of Trump's protectionist policies reigniting inflation and the possibility of the Fed maintaining a hawkish stance are providing some support for the US Dollar (USD), limiting further gold price gains. The overall market sentiment remains positive due to the Israel-Hamas ceasefire and potential easing of tensions between the US and Russia. However, gold prices are still underpinned by expectations of rate cuts and trade war concerns. Investors are awaiting the upcoming Bank of Japan policy meeting and flash PMI data later this week, which could further influence gold market volatility. 

From a technical standpoint, gold prices (XAU/USD) have gained momentum after settling above the $… supply zone, with daily chart oscillators showing positive traction while staying away from overbought conditions. This supports a bullish outlook, with the potential for further gains towards the $… resistance, followed by the $… range. A continued upward move could eventually target the all-time high near $…. However, should there be a pullback, the $… level is expected to provide solid support. A drop below the recent low around $… could lead to technical selling, pushing prices further toward the $… area. Below this, the $… level and the $… zone, supported by an ascending trend-line from November and the 100-day EMA, would be key levels to watch.