Will Gold Stay Near Record Highs Before Powell’s Speech?
Gold remains stable near its all-time highs as traders await comments from Federal Reserve Chair Jerome Powell.
FUNDAMENTAL OVERVIEW:
Gold (XAU/USD) held steady on Thursday after surging past the $4,000 psychological threshold and setting a new all-time high of $4,059 in the previous session. At the time of writing, XAU/USD trades near $4,040, rebounding from an intraday dip around $4,000 as traders consolidate profits following an extended rally fueled by strong safe-haven demand.
The extraordinary surge in gold aligns with a broader “buy everything” sentiment across global markets, where US equities, Bitcoin, and even the US Dollar (USD) are advancing in tandem. This unusual coexistence of strength across risk assets and traditional havens highlights a complex backdrop—balancing optimism over potential monetary easing with ongoing uncertainty surrounding economic growth, inflation, and geopolitical risks.
The broader outlook for bullion remains bullish, with any pullback likely to invite fresh buying. Expectations of two additional Federal Reserve (Fed) rate cuts this year continue to lend support to gold by keeping Treasury yields subdued. Meanwhile, persistent geopolitical and fiscal challenges—ranging from the prolonged US government shutdown to political turbulence in Europe and Japan—are sustaining safe-haven flows and helping the metal maintain its position near record highs.
GOLD TECHNICAL ANALYSIS CHART:
Technical Overview:
Gold is trading within an up channel.
Gold is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 4046.88
Immediate support level: 4000.00
HOW TO TRADE GOLD
From a technical perspective, Gold’s trend remains firmly bullish, though somewhat overextended. The metal continues to trade well above its key moving averages, indicating that buyers maintain control. Immediate support is seen near the $4,000 psychological mark, and if the short-term pullback holds above this level, the uptrend could resume, paving the way for further gains.
