Bullish gold prices showcasing very strong upward momentum. The XAU/USD pair is currently trading just below its all-time high of $4,379.76 per troy ounce. Gold’s spot price is trading just under $4,350. On Monday, it jumped significantly on strong demand largely propelled by persistent geopolitical tensions and trade concerns, namely between the United States and China. The market will continue to watch as these factors continue to support gold’s safe haven asset.
The XAU/USD pair has proven to be quite optimistic, closing well above each and every bullish moving average on Monday. Additional support comes from the 20 Simple Moving Average (SMA), which currently sits at just above the $4,278 mark. That anchors the price, even amid dramatic market volatility. According to many analysts, support level for the pair are set at $4,323.80, $4,311.40, and $4,300.00. On the resistance side of the equation, major levels are located at $4,355.60, $4,367.10 and the all-time high at $4,379.80.
The trade war between the United States and China is worsening. The result is that investors are pouring into gold, looking for safety from a potentially volatile market. While the relations and their trajectory are very much in doubt, the uncertainty motivated market players to keep a careful eye on ongoing developments, adding to gold’s persistent robustness. Even with this bullish sentiment, the positive sentiment in global equities seems to cap gold’s upside potential in the near-term.
Recent trading sessions indicate that intraday declines below the bullish 20 SMA were swiftly reversed, affirming that bulls are firmly in control of the market for gold. This is a long-term trend that indicates investor confidence in gold’s ability to preserve value. They still express optimism in the face of persistent political and trade uncertainty. Additionally, the 30 simple moving average (SMA) for XAU/USD is only slightly higher at $3,983, lending more credibility to the positive view.
Market analysts often make a big deal about support and resistance levels. They take these indicators and create predictions on where gold prices will move in the future. There is good buying interest evident in the very friendly current trading environment that is pushing prices higher. Macroeconomic factors such as equity market performance and geopolitical developments will play a crucial role in determining the future direction of gold.