Will Gold Break Records Amid Fed Dovishness And Rising Tensions?

Fundamental Analysis

* Dovish Statements from Fed and Risk-Off Sentiment: Gold prices rebounded and extended their gains, driven by two major factors. First, the Federal Reserve’s dovish tone and hints at potential rate cuts bolstered demand for the non-yielding asset. Second, escalating tensions in the Middle East added to the safe-haven appeal of gold as investors sought protection against rising geopolitical risks.

Technical Analysis

* Technical Breakout: Gold prices are trading higher while currently still testing the resistance level. With the fundamentals remaining strong to support safe-haven gold, any breakout could suggest a likely extension of gains. Conversely, a failure to break out may indicate a technical retracement and profit-taking by investors.

* Resistance and Support: If the bullish momentum persists, gold prices might extend their gains toward the next resistance level of 2485.00 after a successful breakout. If not, we could expect a retracement, with prices potentially retesting the support level of 2420.00.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

• Moving ahead, markets are closely monitoring several crucial US economic data releases, especially Nonfarm Payrolls and the US Unemployment rate, due later this week for further trading signals.

• Any better or worse-than-expected reading from the US report could trigger significant fluctuations in gold prices.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and global data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

Open Your Free Demo Account And Start Trading Risk-Free

Join Now

Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.