Gold prices are developing a bullish breakout as recent technical indicators point to a positive setup. Gold needs to crack above the $3,370-$3,375 area to maintain bullish momentum. This level is important for keeping the market’s overall upward trajectory. Analysts point to the significance of a multi-day close above this confluence zone. Such a move will be fundamental for gold prices to continue soaring.
Recent price action indicates that $3,295 is a major support level for gold. This support is further strengthened by the convergence of the 21-day Simple Moving Average (SMA) with the 38.2% Fibonacci retracement level. This base is extremely important as gold heads into an inflection point in its trading pattern. So the overall sentiment around U.S. Treasury bond yields has done a 180. Increased expectations of a more dovish Federal Open Market Committee (FOMC) in the US is currently supporting gold prices.
As gold becomes increasingly in demand, prices are on the way to re-testing last Friday’s two-week high of $3,365. Yet, in the face of this relentless weakness with the U.S. Dollar, gold recently took a short-term step back from these highwater marks. Market dynamics shifted positively following former President Donald Trump’s decision to delay the implementation of 50% tariffs on European Union imports, extending the deadline to July 9. This joint development has led to significant improvement in overall risk sentiment and to a re-pricing of trading strategies.
… with market participants intensely focused on mid-tier U.S. economic data. They’re watching developments in the trade war for signals that could push gold prices higher. Analysts are quick to point out that the geopolitics is still a big wild card. Ongoing conflicts, particularly between Russia and Ukraine, and discussions regarding the Iran nuclear deal with the United States continue to bolster interest in gold as a safe-haven asset.
Finally, the technical indicators as well point to a strong position for gold –倍率. The 14-day Relative Strength Index (RSI) is bullish, resting above the midline at a value of ~57. This is a bullish sign as it shows the price has room to extend higher. Experts are alerting to the possibility of a selling momentum that can accelerate. In this case, retesting the 50% Fibonacci support at $3,232 would become likely.
Adding more support is gold’s 50-day Simple Moving Average (SMA), located at $3,213. Minneapolis Fed President Neel Kashkari has raised the alarm on indefinite tariffs, arguing they “increase the chances of stagflation.” What economic indicators influence Federal Reserve decision-making? Economic data is at the center of US monetary policy. These decisions shape monetary policy, which subsequently determines gold prices.
Analysts specifically noted important resistance levels while looking towards the future, with targets of $3,400 and $3,435. Should the market achieve a sustained break above the $3,370-$3,375 confluence area, it may pave the way for reaching these higher targets.
“Extended tariffs raise risk of stagflation.” – Minneapolis Fed President Neel Kashkari