Article by: ETO Markets

Gold prices (XAUUSD) have experienced significant upward momentum over the past week, reaching an all-time high and currently trading around $…. This reflects a robust bullish trend, driven by gold’s status as a safe-haven asset amid escalating geopolitical tensions, such as the Israel-Gaza conflict, and global economic uncertainties, including trade war concerns stemming from Trump’s aggressive tariff policies and heightened U.S. economic instability. Additionally, expectations of Federal Reserve rate cuts have weakened the U.S. dollar, further boosting gold’s appeal. Today, prices slightly retreated after hitting a new high of $… during the Asian session but remain in a high-level consolidation phase. Bearish pressures include technical indicators signaling a mildly overbought condition and potential profit-taking, which could cap short-term gains. However, the bullish macro factors dominate, and market sentiment remains cautiously optimistic. Traders are awaiting the Fed’s policy decision later today, expecting the federal funds rate to stay at 4.25%-4.50%, with focus on updated economic projections and Chair Powell’s remarks for clues on future rate paths. 

From a technical prospective, gold (XAUUSD) is consolidating near its historical peak of … dollars, with the latest close at … dollars showing strong bullish momentum and immediate resistance at this all-time high, a key psychological level. The price remains above the 10-day SMA at … dollars, confirming the uptrend. The RSI_9 at 78.48 indicates potential overbought conditions, hinting at a pullback risk. Key support lies at … dollars, marked by the 23.6% Fibonacci retracement. A deeper correction could test … dollars, aligned with the 38.2% retracement. Should gold break above … dollars, the next resistance is at … dollars, another psychological level. Traders should watch these levels closely, especially with the Fed’s decision looming, which could spark volatility.