Gold is trading near its session high as geopolitical risks reach a peak
FUNDAMENTAL OVERVIEW:
- Gold begins a winning streak, surging more than 4% in just two trading days.
- Geopolitical tensions from the Trump administration, currency instability in Asia, and the situation in Israel are driving investors back into Gold.
- With risks mounting on multiple fronts, there’s a growing possibility that Gold could test its all-time high of $3,500.
Gold (XAU/USD) reaches $3,380, hitting a new two-week high as global geopolitical tensions continue to drive demand for safe-haven assets. In the Middle East, Israel is intensifying preparations for a ground offensive in Gaza aimed at full control.
In the U.S., pressure is mounting on President Donald Trump and his administration to finalize a first trade deal. Trump and his team have been outspoken about imminent deals, with U.S. Commerce Secretary Howard Lutnick stating that the first agreement will be with a top-ten economy, according to Fox News.
Meanwhile, sharp movements in the Forex market are keeping investors on alert. Traders are evaluating positions following a significant appreciation of the Taiwan Dollar (TWD) against the U.S. Dollar (USD) on Monday. The larger concern is the potential for a domino effect on the USD, which could weaken against other major Asian currencies, undermining its status as a reliable safe-haven and boosting Gold.
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 the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 3420.00
Immediate support level: 3343.50
HOW TO TRADE GOLD
Gold is experiencing a strong rally, marking what appears to be a second wave of safe-haven inflows into the precious metal. After an initial surge, the price reversed lower, underwent a correction, and established a support base. It rebounded sharply and has now broken through a key resistance level, trading above it. Following this successful breakout, a pullback and retest of the breached level may occur before Gold resumes its upward trajectory.