Gold prices are set to rise even higher
Wednesday's first half of the European session saw the gold price (XAU/USD) maintain its bullish bias for the third day in a row, trading close to its highest level since November 1. One of the main reasons why haven flows into the precious metal are still occurring is the uncertainty surrounding US President Donald Trump's trade policy. In addition, the non-yielding yellow metal is supported by the anticipation that the Federal Reserve (Fed) will lower interest rates twice this year.
However, the positive market sentiment, rising US Treasury bond yields, and a slight recovery of the US dollar (USD) from a two-week low all work against the price of gold. Nevertheless, the fundamental background remains balanced solidly in favor of optimistic traders and supports expectations for an extension of the XAU/USD positive trend experienced over the previous month or so. Therefore, any significant corrective decline may still be viewed as a buying opportunity and is probably going to stay small.
Technically speaking, bullish traders viewed the overnight breakout of the $2,745 Resistant zone as a new trigger. Future gains should be possible if the price continues to rise beyond the $2,770 barrier. The price of gold may then try to challenge the record high, which was reached in October 2024 at a level of $2,790.
Conversely, any corrective reversal might now be viewed as a buying opportunity and would stay restricted around the $2,745–$2,725 range. The next significant support is located close to the $2,700 pivot point; if it is decisively broken, this could lead to intense technical selling and push the price of gold to the $2,650 region before reaching the $2,625 level, where the daily EMA 72 would act as further support.
However, the positive market sentiment, rising US Treasury bond yields, and a slight recovery of the US dollar (USD) from a two-week low all work against the price of gold. Nevertheless, the fundamental background remains balanced solidly in favor of optimistic traders and supports expectations for an extension of the XAU/USD positive trend experienced over the previous month or so. Therefore, any significant corrective decline may still be viewed as a buying opportunity and is probably going to stay small.
Technically speaking, bullish traders viewed the overnight breakout of the $2,745 Resistant zone as a new trigger. Future gains should be possible if the price continues to rise beyond the $2,770 barrier. The price of gold may then try to challenge the record high, which was reached in October 2024 at a level of $2,790.
Conversely, any corrective reversal might now be viewed as a buying opportunity and would stay restricted around the $2,745–$2,725 range. The next significant support is located close to the $2,700 pivot point; if it is decisively broken, this could lead to intense technical selling and push the price of gold to the $2,650 region before reaching the $2,625 level, where the daily EMA 72 would act as further support.
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