Article by: ETO Markets
Gold prices have remained in a consolidative phase for a second consecutive day, hovering near record highs of $…, as traders proceed with caution amid ongoing tariff threats from US President Donald Trump and the upcoming release of US inflation data. Despite a lack of haven demand in Asian markets following Friday's Wall Street sell-off, there are renewed hopes surrounding the second round of US-Russia peace talks aimed at resolving the Ukraine conflict, with Russian Deputy Foreign Minister Sergei Ryabkov confirming that the next meeting will be at the level of department heads. Additionally, China’s new rural revitalization measures for 2025 and positive market sentiment following Germany's Conservative Party win in the national elections have supported market optimism. However, this risk appetite has diminished the appeal of safe-haven assets like gold, contributing to a rise in US Treasury bond yields. On the other hand, a weaker US Dollar, fueled by the Euro rally after the German elections, has provided some support for gold. The metal also benefits from expectations of two potential interest rate cuts by the US Federal Reserve, as indicated by the weak February PMI data, which raised concerns about the US economic outlook. As markets continue to watch developments in US-Russia talks, tariff threats, and economic data releases, gold buyers may find continued support from favorable technical setups and sustained US Dollar weakness.
From a technical perspective, gold prices have found support multiple times at the 14-day Simple Moving Average (SMA) at $…. For the record rally to resume, a sustained move above the resistance level at $… is necessary on a candlestick closing basis. The Relative Strength Index (RSI) is currently positioned above the midline near 60, indicating potential for further upside. A convincing break above the record high of $… could open the door to the next resistance at $…. However, if buying momentum weakens at higher levels, the price may revisit $…, and a failure to defend this support could lead to a decline toward the $… level. Prices may also find support at $…, the endpoint of the last pullback.
