Today’s Gold Analysis Overview:
- The Overall Gold Trend: Still bullish.
- Today’s Gold Support Levels: $3300 – $3260 – $3200 per ounce.
- Today’s Gold Resistance Levels: $3385 – $3420 – $3500 per ounce.
Today’s gold trading signals update:
- Sell the gold index from the resistance level of $3373, with a target of $3280 and a stop-loss at $3410.
- Buy the gold index from the support level of $3260, with a target of $3380 and a stop-loss at $3180.
Technical Analysis of Gold Price (XAU/USD) Today:
Spot gold prices started this week’s trading on a positive note, with the gold price index rising to the resistance level of $3353 per ounce, recovering from last week’s losses that reached the support level of $3268 per ounce. According to gold trading platforms, buying of gold bullion has resumed amid gold investors seizing the recent losses. This performance remains cautious as traders await the release of key US economic data and trade developments between the US and China.
Will Gold Prices Rise in the Coming Days?
Don’t forget that spot gold prices have risen to a historical record high of $3500 per ounce, the highest in the history of gold bullion prices. Obviously, this was fuelled by continued political and financial uncertainty. Despite US President Trump’s claim of progress in trade talks with China, Beijing denied holding any discussions, and Treasury Secretary Scott Bessent offered little support for Trump’s statements.
Overall, gold prices may continue to rise as ongoing tensions have contributed to sustained demand for gold as a traditional safe haven. Attention now turns to several key US economic data releases this week, including the first estimate of Q1 GDP, March PCE inflation data, and the April US non-farm payrolls report. These figures are expected to provide new indications of the economy’s strength and the US central bank’s next policy steps.
Trading Tips:
Traders are advised to consider buying gold from every downward level, but without taking risks and distributing the trading amount across several levels while monitoring the factors affecting the gold market.
Technical Indicator Movements for Gold Prices
According to trading on the daily timeframe chart, gold prices remain in an upward trajectory, as evidenced by the MACD (12, 26 close) indicator stabilizing in the overbought zone. Conversely, the 14-day RSI indicator is below the overbought threshold, giving bulls an opportunity for further upward progress before reaching overbought conditions.
According to the fundamental analysis of the gold market, gold bullion prices are finding momentum from the decline in the US Dollar Index (DXY), which measures the performance of the US currency against a basket of other major currencies. The dollar price is stabilizing downwards as traders brace for a flood of data expected to reveal the early impacts of President Trump’s tariffs. According to data from the economic calendar, the March PCE Price Index release is expected to show core inflation at around 2.2% year-on-year, and core prices rising by only 0.1% month-on-month – the weakest core reading since March 2021 – increasing the likelihood of the Federal Reserve pausing or even cutting interest rates by mid-2025.
At the same time, temporary exemptions from tariffs between the US and China – selected exemptions in the absence of a formal agreement – have undermined the US dollar’s safe-haven premium. With the release of the US jobs report for April, Q1 GDP figures, and the Fed’s preferred inflation gauge this week, any negative surprises could bolster expectations of an earlier easing of monetary policy by the Federal Reserve.
According to Forex market trading, the dollar’s support last week – fuelled by Mr. Trump’s hints of softer tariffs on China and his backtracking on the threat to Federal Reserve Chairman Jerome Powell – has already begun to wane, leaving the US dollar on the defensive.
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