Article by: ETO Markets
The gold market is experiencing significant momentum driven by a convergence of major catalysts, with President Trump's newly implemented tariff policies taking center stage. The announcement of 25% tariffs on Canada/Mexico and 10% on China has triggered substantial safe-haven flows, evidenced by the recent ...% price deviation above the 50-day moving average. This trade tension comes amid a complex monetary policy landscape, where the Federal Reserve has maintained its rate at ...%, with markets pricing in potential rate cuts later in the year. The delay in expected rate cuts, initially anticipated for March, has created a dynamic interplay between gold prices and the US Dollar. The precious metal has shown remarkable resilience, maintaining strength despite USD appreciation, which traditionally acts as a headwind. This price action suggests a fundamental shift in market dynamics, where geopolitical risks are outweighing traditional correlations. Central bank purchasing continues to provide robust support, with recent data indicating sustained buying interest from major economies including China. The broader geopolitical landscape, particularly tensions in the Middle East and the ongoing Russia-Ukraine conflict, has amplified gold's appeal as a strategic asset. This combination of monetary policy uncertainty, trade tensions, and geopolitical risks has created a strong fundamental foundation for gold prices.
The daily chart demonstrates a robust upward trajectory with gold maintaining position within a well-defined ascending channel. Current price action shows an average 14-day ... of ..., indicating strong momentum without reaching overbought conditions. The price structure finds solid support at $... (previous resistance turned support) with a secondary support level at $..., coinciding with the 50-day SMA. The immediate resistance sits at $..., the recent high, followed by the higher channel price $.... A 20-day volatility reading of ...% suggests stable price movement, with ... analysis confirming bullish momentum as the main line (...) maintains position above the signal line (...). The positive ... divergence and higher lows pattern reinforce the bullish trend, suggesting potential for continued upward movement pending a decisive break above the $… psychological barrier.
