Gold prices rebounded strongly as the U.S. dollar weakened and concerns about global economic growth intensified. A worse-than-expected U.S. inflation data and renewed fears over the escalating U.S.-China trade war drove investors toward safe-haven assets. Growing expectations that the Federal Reserve may begin cutting interest rates have also increased gold’s appeal as a hedge against both inflationary pressure and geopolitical risks.
Technical Breakout:
From a technical perspective, gold is trading higher and is currently testing the resistance level of 3225.00. The MACD indicator reflects increasing bullish momentum, suggesting the potential for further gains. A confirmed breakout above 3225.00 would indicate a continuation of the uptrend, with the next target set around the 3295.00 resistance level. However, if bullish momentum fades, the commodity may retreat and consolidate within the support zone near 3170.00.
Potential Risks: The ongoing trade war remains the primary risk factor that could lead to further volatility
Monitoring: Stay updated on potential trade tensions between US and world to gauge the likelihood movement for several asset classes.
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Gold prices rebounded strongly as the U.S. dollar weakened and concerns about global economic growth intensified. A worse-than-expected U.S. inflation data and renewed fears over the escalating U.S.-China trade war drove investors toward safe-haven assets. Growing expectations that the Federal Reserve may begin cutting interest rates have also increased gold’s appeal as a hedge against both inflationary pressure and geopolitical risks.
Technical Breakout:
From a technical perspective, gold is trading higher and is currently testing the resistance level of 3225.00. The MACD indicator reflects increasing bullish momentum, suggesting the potential for further gains. A confirmed breakout above 3225.00 would indicate a continuation of the uptrend, with the next target set around the 3295.00 resistance level. However, if bullish momentum fades, the commodity may retreat and consolidate within the support zone near 3170.00.
Potential Risks: The ongoing trade war remains the primary risk factor that could lead to further volatility
Monitoring: Stay updated on potential trade tensions between US and world to gauge the likelihood movement for several asset classes.
Open Your Free Demo Account And Start Trading Risk-Free
Join Now
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.