Article by: ETO Markets
Gold maintains bullish momentum at $..., supported by three key verified market drivers. First, Federal Reserve policy expectations are shifting, with markets pricing in ... basis points of cuts for 2025, though the disinflation stall (visible in recent price charts) suggests a cautious approach. Second, President-elect Trump's proposed trade policies, starting with ...% universal tariffs, have injected fresh uncertainty premium into gold pricing - directly observable in the recent volatility patterns. Third, deteriorating economic conditions, evidenced by December's Durable Goods Orders contraction (...% MoM) and declining Consumer Confidence (...), strengthen the monetary easing narrative. Chart validation shows increased safe-haven flows during US trading hours, particularly following economic data releases. The primary risk to this outlook stems from persistent USD strength (DXY at ...), creating visible resistance at technical levels. Over the 3-month horizon, trade policy implementation and Fed response will likely dominate price action, with chart patterns suggesting increased institutional accumulation at support levels.
Gold's price action has established a well-defined parallel ascending channel since the recent swing low at $.... The channel's upper boundary at $... forms a critical resistance zone, while the lower support line at $... has provided a dynamic floor for price action. Within this structure, immediate resistance emerges at $..., where recent advances have been contained. A successful breakout above this level, particularly if accompanied by increased volume, could accelerate momentum toward the channel's upper boundary. The lower channel support has proven robust, with multiple tests resulting in strong bounces, most recently evident in the recovery from $.... This ascending channel formation is further reinforced by positive technical indicators, with RSI-14 at ... maintaining a bullish bias while respecting the channel's parallel structure. The MACD configuration (... vs ...) suggests continued upward momentum within the channel parameters. A decisive break above the channel's upper boundary could trigger an extension toward $..., while a channel breakdown would target the crucial support at $..., which aligns with the 50-day SMA (...).
