Today’s analysis offers a comprehensive overview of the gold markets, highlighting the fundamental and technical factors shaping current trends. Our report is designed to provide investors with the insights necessary to navigate these markets with confidence.
Gold prices continue to draw safe-haven flows as trade tensions escalate. Expectations of a Fed rate cut are keeping USD bulls on the back foot, offering additional support to gold. Traders are now focused on the upcoming US PCE Price Index for potential market-moving data. The fourth-quarter GDP growth was revised to an annualized 2.4%, surpassing both the previous figure and the consensus estimate of 2.3%. Additionally, US Initial Jobless Claims came in at 224K, better than the expected 225K. On Wednesday, Trump revealed plans to impose a 25% tariff on imported cars and light trucks, set to take effect on April 3, with auto parts duties starting on May 3. Markets are also bracing for a wave of reciprocal tariffs starting April 2.
The daily chart reveals that Gold has exceeded its ascending triangle target of $3,080, suggesting the possibility of a minor pullback in the short term. The 14-day Relative Strength Index (RSI) has entered the overbought territory, reinforcing the case for a potential correction. Should a pullback occur, immediate support for Gold buyers is seen at $3,058, with the $3,000 level acting as a more substantial support. Conversely, if buyers maintain momentum, the next key target on the upside is $3,100. A breakout above this level could present fresh buying opportunities, potentially driving the price toward the $3,150 mark. The Stochastic Oscillator is currently at 90, while the RSI stands at 72.
In the dynamic and constantly changing bullion market, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. Our report aims to offer a balanced perspective to help investors navigate the complexities of gold trading.