Article by: ETO Markets
Gold prices have been under pressure for a third day, yet they remain above the $3,000 mark, buoyed by the news that the Trump administration's planned reciprocal tariffs will be narrower than initially feared—a development that has boosted investors' appetite for riskier assets and weakened safe-haven demand. At the same time, expectations for an imminent Fed rate-cutting cycle to counteract a potential tariff-induced economic slowdown have failed to give the US Dollar further momentum following its recent rebound, as traders remain cautious amid persistent geopolitical risks and anticipation of key economic data. In related developments, US delegations are engaged in talks with Ukrainian officials, with further discussions with Russian counterparts on the horizon, while renewed military actions in the Middle East—ranging from Israeli strikes in Gaza and on a major hospital to missile launches by Iran-backed Houthis—continue to heighten regional tensions. Market focus is now shifting towards the upcoming release of flash global PMIs and the US Personal Consumption Expenditure Price Index, which are expected to offer fresh insights into global economic health.
From a technical perspective, the $… level appears to be a crucial support zone that may continue to attract buyers, potentially halting any further downward momentum. Should this level be broken decisively, it could trigger technical selling, driving prices down to the $…–… region, and possibly extending the corrective fall toward the $…–… area, where previous resistance has now turned into support. Conversely, the all-time peak around the $…–… level, which was touched last week, could present an immediate resistance hurdle. However, with the daily Relative Strength Index (RSI) trending lower from overbought conditions, there is an expectation of follow-through buying that may serve as a fresh trigger for bullish activity, setting the stage for a potential extension of the well-established uptrend observed over the past three months.
