With XAU/USD, the trading symbol for gold in a bullish trend having dipped well below that threshold, it is now preparing to cross the $3,500 barrier for the second time. Gold prices immediately skyrocketed as investors rushed toward safe haven investments amid shifting market sentiments. This increase is driven largely by positive expectations around new trade deals with the United States. This upward momentum has resulted in XAU/USD trading well above all its moving averages, signifying a strong technical outlook.
On the daily chart, XAU/USD is up for two consecutive days. This daily eight-day winning streak has traders licking their chops. In the last trading session, price surged to intraday peaks just above $3,410. This upward movement indicates that demand from buyers is increasing. Bullish Technicals Bullish technical indicators are still looking strong. They’re all, as it stands now, in overbought territory, so traders should remain on their guard as the market approaches these key resistance levels.
Additionally, the 20 Simple Moving Average (SMA) of XAU/USD is building positive momentum. Now it’s on the verge of crossing above the 100 SMA. Such a crossover is generally interpreted as a highly bullish indicator, further strengthening the case for further bullish price action. The 20 SMA on the current day is at $3,275.80. It’s currently extremely well above both the 100 SMAs and 200 SMAs, which are situated much lower. This agreement highlights just how powerful the current momentum in the upward direction is.
XAU/USD is breaking away to resume its bullish trend on the 4-hour Timeframe. According to some analysts, strong support levels are found at $3,392.25, $3,277.60, and $3,263.10. These levels act as a blanket of protection to traders while they look to profit off future moves both up and down in price. Head upward, resistance levels remain at $3,430.20, $3,444.25 and $3,468.30. Whether these key levels hold or break will determine the next stage of price movement.
Investor sentiment toward gold is booming. Even more optimism exists when it comes to expecting the United States to be able to negotiate high-standard trade deals with other countries. These kinds of positive advancements release positive market sentiment and increase overall demand for safe-haven assets such as gold. As European trading hours unfolded, risk-off sentiments got solidified. Political uncertainties in Germany and more broadly have heightened gold’s appeal as a protective investment.