Article by: ETO Markets
Gold prices (XAU/USD) remain near record highs as escalating US-China trade tensions continue to drive demand for safe-haven assets. China’s retaliatory tariffs on US goods, following President Trump’s 10% levy on Chinese imports, have intensified economic uncertainty, further supporting gold. Additionally, expectations that the Federal Reserve will maintain an easing bias have kept US Treasury yields near multi-month lows, weakening the US Dollar and boosting the non-yielding metal. US unemployment claims rose to 219K, reflecting potential labor market softening, while Fed officials offered mixed signals—some cautioning against overheating, while others noted the labor market remains too strong for imminent rate cuts. Market participants now await the US Nonfarm Payrolls (NFP) report, which is expected to show a slowdown in job growth. The data will be crucial in shaping market expectations regarding the Fed’s interest rate outlook, which, in turn, will influence the USD’s trajectory and gold’s next major price movement.
From a technical perspective, gold’s recent bounce reinforces a positive near-term outlook, though the RSI suggests overbought conditions, warranting caution. The immediate resistance level could at $… and the further level could be at $… with overbought considerations. A period of consolidation may be needed before further gains. Key support levels lie at $…, followed by $… and the $…-$… zone, with $… as a critical threshold. A decisive break below $… could trigger technical selling, potentially pushing XAU/USD towards the $…-$… region, a key resistance-turned-support level that, if breached, may signal a deeper correction.
