Today’s analysis offers a comprehensive overview of the gold markets, highlighting both the fundamental and technical factors influencing current trends. Our report is designed to provide investors with the insights necessary to make informed decisions and navigate these markets with confidence.
Gold prices have gained fresh momentum above the $2,850 mark as the US inflation week begins. However, escalating trade war concerns could limit further upside in gold, as renewed haven demand for the US Dollar puts pressure on the yellow metal. Risk aversion resurfaced on Friday, fueled by trade war fears, reversing the US Dollar’s decline after the US Nonfarm Payrolls (NFP) data. The Greenback saw a fresh boost from renewed haven buying, causing gold to pull back from a new all-time high of $2,887. Going forward, the USD could continue its recovery if risk-off sentiment intensifies or if profit-taking occurs ahead of Wednesday’s US Consumer Price Index (CPI) release. In either case, gold’s upside potential appears constrained. However, gold’s downside is likely to be limited by expectations of a dovish Federal Reserve, hopes for China’s stimulus measures, and ongoing trade war risks.
Gold
Gold confirmed a Bull Cross on the four-hour chart after breaking above the falling trendline resistance at $2,862 during Friday’s Asian session. The metal reached a new all-time high of $2,887 before retracing to settle near $2,860. Gold has held above the 21-four-hour Simple Moving Average (SMA), currently at $2,864. At the time of writing, the price is bouncing off the 21-day SMA, aiming to establish support above the $2,880 level. The next key target is the $2,900 round level, and a break above could push prices toward the $2,950 psychological level. The Relative Strength Index (RSI) remains bullish, holding above the midline at around 76, indicating further upside potential. However, if gold breaks below the 21-four-hour SMA at $2,864, the price could decline toward the 50-four-hour SMA at $2,824. The critical support for gold buyers lies at $2,800. The Stochastics Oscillator is at 83, and the Relative Strength Index is at 76.
In the dynamic and ever-changing bullion market, it is essential to stay well-informed with both technical and fundamental analysis to make informed investment decisions. Our report aims to provide a comprehensive perspective, helping investors navigate the complexities of gold trading.