Gold prices are seeing an uptick demand as we enter early Tuesday with market participants focusing on the $3,400 ceiling. The precious metal has been gaining ground as a safe haven asset amid growing geopolitical tensions and economic uncertainty. Recent tariff threats from US President Donald Trump have added fuel to this fire. As investors learn to stay nimble and turn to safe-haven assets, gold’s appeal only strengthens, placing it in a prime position for upward movements.
Gold bulls continue to look to the 14-day Relative Strength Index (RSI) as a key gauge. Nonetheless, it’s holding up fairly strong, still above that 50 level. We’re in a very bullish sentiment environment. Close 2023 price action indicates that gold was acquired at the lower limit of the 11-day range, above $3,380. No wonder the gold market is abuzz with optimism about gold’s short-term outlook. This enthusiasm is bolstered by the recent crossing of the 21-day Simple Moving Average (SMA) over the 50-day SMA on Monday, thus confirming a Bull Cross.
Gold’s next serious resistance comes in around the $3,400 vicinity, an area that traders will definitely be watching. Should the price breach this level, it could pave the way for further advances toward the static resistance at approximately $3,440.
Perhaps of more significance, gold has not closed under the 100-day SMA since December 31, 2024. This points to a strong bullish momentum, the next firm support level found at this moving average at $3,324. Gold’s underlying market stability continues to build a solid base well over the $3,350 level. A daily bullish RSI confirms this, indicating extremely strong and persistent buying pressure.
This recent pullback on Monday turned out to be short-lived, as buyers showed no hesitation. Instead, it appears to have provided a buying opportunity around those highs. Geopolitical uncertainty and shift in economic policies are prompting investors to turn to gold. So too are grocers trying to protect their investments from potential market reversals.
Gold continues to cement its status as the safe-haven asset. This “last bastion” status is further supported by its natural hedge against the Japanese Yen (JPY) and US Treasuries. With uncertainty looming over the financial landscape, assets like gold are more attractive than ever to investors looking for security in a volatile market.
According to the market analysts, the sellers had to get past a key resistance area. This region of confluence is where the 21-day SMA crosses the 50-day SMA, just under the price of $3,350. Failure to act will likely bring continued gold price upward pressure.