The gold market has experienced a resurgence in recent days, with the gold price index rising to a significant level. However, traders must be aware of the potential risks and rewards associated with gold trading.
Gold Prices: A Bullish Trend
The overall gold trend remains bullish, with spot gold prices currently trading at a significant level. This upward trend is expected to continue as long as the gold price index remains above the resistance level of $3353 per ounce.
- Key factors contributing to the bullish trend:
Political and financial uncertainty,
Decline in the US dollar’s safe-haven premium,
Temporary exemptions from tariffs between the US and China
Today’s Gold Support and Resistance Levels
The current support levels for gold are $3300 – $3260 – $3200 per ounce, while the resistance levels are $3385 – $3420 – $3500 per ounce.
| Level | Price (per ounce) |
|---|---|
| Support Levels | $3300 – $3260 – $3200 |
| Resistance Levels | $3385 – $3420 – $3500 |
Technical Analysis of Gold Price (XAU/USD)
Spot gold prices have risen to a significant level, with the gold price index currently trading above the resistance level of $3353 per ounce. This upward trend is expected to continue as long as the gold price index remains above this level. According to the technical analysis of the gold market, the MACD (12, 26 close) indicator is stabilizing in the overbought zone, while the 14-day RSI indicator is below the overbought threshold. This suggests that the gold price index is likely to continue its upward trajectory.
Will Gold Prices Rise in the Coming Days?
The gold market is expected to continue its bullish trend, with spot gold prices likely to rise further in the coming days. However, traders must be aware of the potential risks and rewards associated with gold trading.
Key Factors to Consider
There are several key factors to consider when trading gold, including:
- US economic data releases:
First estimate of Q1 GDP, March PCE inflation data, and the April US non-farm payrolls report
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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 the technical analysis of the gold market, the MACD (12, 26 close) indicator is stabilizing in the overbought zone, while the 14-day RSI indicator is below the overbought threshold. This suggests that the gold price index is likely to continue its upward trajectory.
Fundamental Analysis of the Gold Market
The fundamental analysis of the gold market suggests that gold bullion prices are finding momentum from the decline in the US dollar’s safe-haven premium. The US dollar’s safe-haven premium is declining due to the temporary exemptions from tariffs between the US and China. According to 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. This suggests that the US economy is experiencing a slowdown, and the Federal Reserve is likely to pause or even cut interest rates by mid-2025.
US Dollar’s Safe-Haven Premium
The US dollar’s safe-haven premium is declining due to the temporary exemptions from tariffs between the US and China. This has undermined the US dollar’s premium, leaving it on the defensive.
Conclusion
The gold market is expected to continue its bullish trend, with spot gold prices likely to rise further in the coming days. However, traders must be aware of the potential risks and rewards associated with gold trading, and consider buying gold from every downward level while monitoring the factors affecting the gold market.
