Gold (XAU/USD) has been in a strong uptrend, consistently making higher highs and higher lows. The price has been moving within a well-defined bullish channel but recently broke above it, signaling strong upward momentum. The 7-day Exponential Moving Average (EMA) is positioned above the 21-day EMA, confirming the continuation of the bullish trend. Currently, gold is testing a key resistance zone around $2,959. If this level is broken with strong buying volume, gold may rally further to new highs. However, if resistance holds, a pullback to the $2,928-$2,940 zone** is possible, where previous support levels may attract buyers. The overall technical structure remains positive, with dips likely to be bought unless there is a significant change in sentiment.
The Trump administration had a significant impact on gold prices during its tenure, with policies and global events shaping market sentiment. The U.S.-China trade war under Trump created economic uncertainty, increasing demand for safe-haven assets like gold. Tariffs and retaliatory measures caused market volatility, leading investors to seek refuge in gold. Trump’s pressure on the Federal Reserve to cut interest rates led to lower yields on U.S. bonds. Since gold is a non-yielding asset, lower interest rates made it more attractive to investors. The Fed’s dovish stance supported gold’s long-term rally.
Gold remains in a strong uptrend, with technical indicators supporting further upside. A break above $2,959 could lead to new highs, while a rejection might trigger a pullback to the $2,928-$2,940 support zone. Fundamentally, factors such as global economic uncertainty, U.S. monetary policy, and geopolitical risks continue to influence gold prices. While Trump’s policies previously played a role in gold’s rise, similar themes of debt, inflation, and interest rates remain key drivers for gold in today’s market. Investors should monitor key resistance levels, economic data, and geopolitical events to anticipate gold’s next move.
Until then, Happy Trading!
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