Article by: ETO Markets

Gold prices have surged to an all-time high above $3,100 amid three consecutive days of robust buying, spurred by growing fears over impending US tariffs and broader geopolitical tensions. Investor sentiment has been shaken by signals of a potential rate-cutting cycle from the Federal Reserve—driven by a tariff-induced economic slowdown—which has led to sustained US Dollar selling. At the same time, persistent worries about rising inflation, evidenced by US data showing a notable monthly uptick in the PCE Price Index and core inflation, have reinforced gold’s appeal as a hedge against price increases. In parallel, aggressive tariff policies and strong rhetoric from President Trump, including threats against key foreign economies and comments on Russian, Iranian, and Ukrainian policies, have heightened market uncertainty and further boosted safe-haven flows into the precious metal. Despite the current overbought conditions that might temper further gains in the near term, the overall fundamental backdrop continues to favor a bullish outlook for gold. 

From a technical perspective, Monday's breakout above $… make the previous all-time high near $…–… acted as a strong support level for traders, yet the daily RSI remains above 70 for the third consecutive day, indicating that the market is currently overextended. Consequently, it appears advisable to wait for a period of consolidation or a slight pullback before committing further to the three-month uptrend. On the downside, a corrective move below the Asian session low around the $… level may find support near this resistance area, with additional backing at the $…–… zone. If the price breach these supports, it could trigger a more accelerated decline toward the critical $… psychological level, potentially shifting the near-term bias in favor of bearish traders. On the upside, shortly, due to the all-time high, the gold price may find the resistance level at $… and $… as psychological level.