Article by: ETO Markets

Gold prices have remained confined within a narrow range during the Asian session on Monday, reflecting a market in cautious balance despite several supportive factors. Concerns over a potential global trade conflict and growing expectations that the Federal Reserve will implement multiple rate cuts this year—fueled by weaker US jobs data and uncertainty around President Trump's unpredictable trade policies—have provided a safety net for the non-yielding bullion, keeping its downside cushioned. Meanwhile, the US Dollar's slide to near its lowest level since November is positioning gold for a potential upward move, although the current lack of robust buying interest suggests that investors should remain cautious about betting on an imminent resumption of the recent uptrend. Additionally, shifts in Trump's tariff strategies and a slowing US labor market, evidenced by modest job gains and a slight rise in unemployment, have heightened overall economic uncertainty, reinforcing the view that any corrective decline in gold could offer a buying opportunity while still warranting careful positioning given the prevailing market conditions. 

From a technical perspective, Gold has shown notable resilience by holding steady below the $… level, with daily chart oscillators remaining in positive territory despite waning momentum. However, repeated failures to break through the $…–$… supply zone suggest that fresh bullish positions should be deferred until strong follow-through buying is observed. Should this buying momentum materialize, XAU/USD might target the all-time peak around $…, as seen on February 24. Conversely, if the price falls below the critical $…–$… support, it could trigger technical selling, potentially pushing gold down to the $…–$… range, then further toward the February 28 swing low around $…–$…, and eventually toward the $… round figure.