Article by: ETO Markets
Gold prices have surged for the third consecutive day, reaching nearly $… and drawing investors closer to their all-time high recorded on February 24. This rally is driven by growing concerns over the economic impact of US President Donald Trump's aggressive trade tariffs—such as the 25% levy on steel and aluminum imports—and the threat of retaliatory measures from the EU and Canada, which have pushed investors toward safe-haven assets. In addition, market expectations that the Federal Reserve may implement several rate cuts this year—amid a cooling labor market and easing inflationary pressures highlighted by a softer Consumer Price Index and a slowdown in the core inflation gauge—are further supporting gold’s appeal as a non-yielding asset. These dovish Fed expectations have also kept the US Dollar near multi-month lows, thereby adding to the upward momentum in gold prices, while traders await further US economic data like the Producer Price Index to guide short-term opportunities.
From a technical perspective, gold's sustained move beyond the $…-… barrier sets the stage for a potential challenge of the all-time high near $…, buoyed by daily oscillators that remain in positive territory and away from overbought conditions. This suggests that follow-through buying could further propel the uptrend observed over the past three months. However, if the price falls below the $…-… resistance, it may accelerate downward toward the $…-…support level and then the $… mark, with additional supports at the weekly low around $…. A decisive break below the $… zone could pave the way for deeper losses, potentially driving the pair towards the late February swing low near $…-… before ultimately reaching $….
