- The gains of spot gold prices did not stop at the historic peak of $3000 per ounce, which it recorded at the end of last week’s trading and the highest in the history of the gold market.
- Bulls have continued to break new historical resistance levels, as the gold price index now stabilizes around $3020 per ounce, a new historic record for gold prices.
- Global geopolitical and trade tensions, the weak US dollar, and increased global gold purchases as a safe haven continue to support bulls in moving towards new peaks without regard for prices reaching strong overbought levels.
Will gold prices rise in the coming days?
Consider that through gold trading companies’ platforms, prices will remain upward, as uncertainty about tariffs and tensions in the Middle East have boosted safe-haven demand. Tariffs imposed by US President Donald Trump and retaliatory actions by affected countries have raised fears of an economic slowdown.
Also, US President Donald Trump warned on Monday that Iran would be held responsible for any further attacks by the Houthis in Yemen, who have been targeting US and other foreign vessels in the Red Sea.
Gold traders and investors now turn their attention to the US Federal Reserve meeting. With the Fed expected to keep interest rates unchanged, investors will focus on the US central bank’s updated economic forecasts and Chairman Jerome Powell’s press conference for clues on future policy direction.
The Fate of the US-China Trade War
The markets and economists are concerned about the outbreak of a full-scale trade war between the world’s two largest economies. Amid retaliatory tariffs, US President Donald Trump announced that Chinese President Xi Jinping would visit Washington soon amid escalating trade tensions. During an event in Washington, Trump referred to recent visits by other world leaders and said Xi’s visit would take place in the “not too distant future.”
Since returning to office, Trump has twice increased tariffs on Chinese imports, citing Beijing’s failure to curb the flow of illicit fentanyl. Reports indicate that US and Chinese officials are considering a possible meeting in June, coinciding with both leaders’ birthdays, but no specific date has been confirmed. It is customary for US and Chinese leaders to exchange visits, but Trump has not yet visited Beijing since returning to office.
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The US Dollar Price Is Now Under Strong Selling Pressure
According to Forex market trading, the US Dollar Index (DXY), which measures the performance of the US currency against a basket of other major currencies, is stabilizing near its five-month low, as economic uncertainty and trade tensions have affected the currency. Financial markets remain cautious amid concerns about US trade policies, as President Donald Trump’s aggressive stance on tariffs raises fears of a potential economic slowdown.
On the economic side, according to economic calendar data results, data released yesterday showed US retail sales rose less than expected in February, with a downward revision to the previous month’s reading. However, control group sales, which came in stronger than expected, provided some reassurance, indicating a limited economic slowdown. Traders are focused on the Federal Reserve’s monetary policy decision on Wednesday, where US interest rates are widely expected to remain unchanged. However, markets expect about 60 basis points of Fed rate cuts this year.
Meanwhile, both the Bank of Japan and the Bank of England are scheduled to announce their monetary policy decisions later this week.
US Treasury Bond Yields Witness Stability
According to recent trading, the 10-year US Treasury yield stabilized at around 4.29% today after a volatile session, as investors await the Federal Reserve’s monetary policy decision. The Federal Reserve is widely expected to leave US interest rates unchanged, although financial markets anticipate a rate cut of approximately 60 basis points this year.
Furthermore, concerns about a potential economic slowdown have been exacerbated by President Donald Trump’s tariff policies.
Gold Price Technical Analysis and Expectations Today:
According to the performance on the daily chart above and gold analysts’ forecasts today, the general trend for gold prices is upward and will remain strongly upward as long as bulls cling to the historic psychological peak of $3000 per ounce, taking into account that this peak was sufficient to push technical indicators towards strong overbought levels, as is clear on the performance of the Relative Strength Index and the MACD indicator. Currently, the closest resistance levels for gold prices are $3035, $3070, and $3120 per ounce, respectively.
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