Gold prices are up dramatically to begin the week. The XAU/USD is bullish and currently trading above $3,384 on the H4 chart. Investor apprehension over former President Donald Trump’s proposed tariff policies is growing. It’s no surprise then that so many are turning to gold for safety. Looking at the recent price action, we can see that XAU/USD is currently ranging near important supply and demand zones. It’s concomitantly preparing for breakout best-case scenarios too.
XAU/USD soared past the $3,350 per troy ounce level as of Monday’s close, as it logged its second straight session of gains. Monthly Resistance Levels Analysts are looking for a large consolidation range to form around $3,344. This bullish price movement indicates that a breakout above this resistance line can see gains stretched to $3,494. On the flip side, a negative breach of $3,344 could set in motion an XAU/USD drop to the $3,235 support line.
Market Dynamics and Technical Trends
These recent technical indicators are a good window into the market sentiment. The MACD indicator is painting a bullish picture, with the MACD signal line above zero and trending strongly to the upside. In short, that upward momentum is feeding the bullish sentiment expecting XAU/USD to reach $3,384 in the near-term. From there, however, it could have a corrective pullback to $3,333.
Currently, on the H1 chart, XAU/USD is moving sideways above $3,333 after dipping to $3,310 at the hours’ open. Overall market structure and indicators point to one last upward move at least toward $3,390 creating a new bullish sentiment among investors. Resistance lies at $3,384, but support is down at $3,333. This interplay will largely determine the next moves for gold prices.
Investor Sentiment Influences Gold Prices
In times of economic uncertainty, investor sentiment continues to play a large role in driving up gold prices. Fears over Trump’s trade agenda have already rattled markets. With uncertainty hanging over international trade policies and ongoing concern over stock market instability, many investors are seeking the shelter of gold as a safe-haven asset. This recent change in strategy has played a big part in XAU/USD’s recent rise.
The macroeconomic environment has an ongoing, strong influence on investor appetites. In an environment of persistent geopolitical uncertainty and market volatility, gold provides a natural hedge against inflation and currency devaluation. Looking to today, today’s market dynamics are a testament to this historical trend as investors grapple with inflation and interest rates in a new, multifaceted global economy.
Future Price Predictions and Market Outlook
Looking forward, analysts expect XAU/USD will retest the $3,333 resistance level from above after hitting its final target of $3,384. If the surge in price continues and breaks above this resistance level, it will set the stage for further upside. We might even watch it climb all the way up to $3,494! If the market falls back below $3,344, it will be under serious bearish downside pressure. This bullish movement could push it closer to the crucial support number of $3,235.