Gold prices have gained traction for the third consecutive day, supported by geopolitical tensions, retreating US bond yields, and trade war concerns. The Federal Reserve’s hawkish stance on rate cuts keeps the US Dollar firm, limiting gold’s upward momentum. However, safe-haven demand for the precious metal remains strong amid global uncertainties. Technical indicators point to a potential climb beyond $2,670, while any pullbacks could find support near $2,645. Investors now await speeches from FOMC members and the upcoming US Nonfarm Payrolls report for further cues. A break above $2,670 may target the $2,700 mark, signaling bullish momentum for the yellow metal.
Key Highlights
# Gold extends gains for the third day despite a firm US Dollar.
# Geopolitical risks and trade tensions drive safe-haven demand.
# US bond yields retreat, supporting a positive outlook for XAU/USD.
# Technical indicators suggest bullish momentum beyond $2,670 resistance.
# Key focus on Fed speakers and US NFP data for further direction.
Gold prices continued their upward trajectory for the third consecutive day, drawing support from geopolitical uncertainties and a softer risk tone. After dipping to $2,655 intraday, gold regained traction, though it remains capped below a multi-week high near $2,670. The Federal Reserve’s hawkish stance on slowing rate cuts in 2025 underpins the US Dollar, limiting gold’s immediate upside.
Geopolitical risks, including ongoing conflicts in Ukraine and the Middle East, have bolstered demand for the safe-haven metal. Simultaneously, US President-elect Donald Trump's tariff plans have fueled market caution, further supporting gold prices. The pullback in US Treasury bond yields adds to the positive sentiment, holding back USD bulls from exerting further pressure on XAU/USD.
On the technical front, gold faces immediate resistance at $2,670. A sustained break above this level could pave the way toward $2,700, with intermediate hurdles near $2,683. Conversely, dips may find support near $2,645, with further downside limited to $2,635. The broader trend remains bullish, supported by positive oscillator signals.
Traders are eyeing speeches by FOMC members and Friday’s Nonfarm Payrolls data for fresh impetus. These developments, coupled with geopolitical tensions and evolving risk sentiment, could influence gold’s trajectory in the coming sessions.
Finally
Gold prices remain bullish, with potential to break above $2,670 and target $2,700. Key supports lie at $2,645 and $2,635, ensuring limited downside.