Gold prices remain high and stable above $3,300. This bullish trend has created an optimistic mood throughout the first half of the day. As a result, the precious metal has closed down every day, albeit slightly. Its resilience is remarkable, thanks to continued speculative interest, particularly on the heels of the recent tariffs-related press releases of the Trump administration. As market participants await upcoming economic reports, including April Durable Goods Orders and May Consumer Confidence, the dynamics surrounding gold prices remain vibrant.
As of this writing, gold is trading a bit lower overall but remains above key support levels. The 20 Simple Moving Average (SMA) for gold is very important, as it has been offering support near $3,288.75. It is holding a tentative bullish angle above the 100 and 200 SMAs. Traders and investors are watching this moving average like a hawk, as it provides a glimpse into what might happen in the near-term, price-wise.
Technical indicators for gold have turned decidedly south, including the Momentum indicator plunging under its 100 level. This change may be a sign of waning demand for purchases. Per bulls still firmly in control of gold on the 4-hour chart short term. The nearest support levels are at $3,322.35, $3,208.65 and $3,288.75 mentioned above.
The new resistance levels are now set at $3351.70, $3365.80 and $3381.20 respectively. These levels establish the topside limits which speculators will be closely monitoring as they trade any ensuing volatility. Analysts are concerned that if gold sinks much below $3,300, it could scare off new buyers. This change in fundamentals could further ignite selling, shifting the balance of power in this market.
Recent headlines with regard to tariffs have provided short-term reprieve for gold. Traders were all-over excited about that news considering the markets’ recent fears over a recession / economic downturn & inflation. Against this troubling backdrop, recent data—including a booming US labor market—indicate a surprisingly resilient US economy. That means the next releases will have a significant effect on gold prices over the next several days.
Market analysts highlight the critical need to stay vigilant as new economic data has begun, and likely will continue shaping trading strategies. On Tuesday, April Durable Goods Orders and May Consumer Confidence come out. We hope that this new information will help illuminate significant economic conditions that may affect gold prices.