Article by: ETO Markets
Gold prices are maintaining strong bullish momentum during the Asian session on Thursday, trading near $… as investors react to President Trump's latest tariff threats and their potential impact on global trade. The precious metal is drawing significant support from safe-haven inflows amidst escalating trade tensions. Trump's plans for new tariffs are exacerbating concerns about global economic stability. Furthermore, declining US Treasury yields and a generally weaker US Dollar are providing additional tailwinds for gold. However, the Federal Reserve's hawkish stance, recently reiterated in Wednesday’s FOMC minutes and by Vice Chairman Jefferson’s comments on persistent inflation, is acting as a potential cap on further gains.
From a technical perspective, gold prices are trading around $… on Thursday, exhibiting a robust bullish bias. On the daily chart, gold prices are firmly above the 9-day, 14-day, and 20-day simple moving averages (SMAs), and the 14-day relative strength index (RSI) is well into overbought territory, indicating strong upward momentum. If gold prices continue to rise, the immediate resistance is near the upper Bollinger Band around $…, and further up at the psychological level of $…. A break above $… could open the path towards higher extension targets, potentially around $…. On the downside, immediate support is found at the 7-day SMA around $…, followed by the 20-day SMA near $…. A drop below these support levels would be needed to signal a potential shift in the current bullish outlook.
