Today’s Gold Analysis Overview:
- Overall Trend: Still bullish.
- Today's Gold Price Support Levels: $3315 - $3260 - $3200 per ounce.
- Today's Gold Price Resistance Levels: $3370 - $3420 - $3500 per ounce.
Today's gold trading signals update:
- Sell gold from the resistance level of $3400, with a target of $3260 and a stop-loss at $3450.
- Buy gold from the support level of $3250, with a target of $3400 and a stop-loss at $3200.
Technical Analysis of Gold Price (XAU/USD) Today:
For two consecutive days, spot gold prices have been subject to profit-taking selloffs, something we frequently mentioned as a possibility at any time, especially after the gold price index moved to the historical psychological resistance level of $3500 per ounce, the highest in the history of gold bullion prices. These sell-offs, which we often pointed out, pushed gold prices to the support level of $3293 per ounce before stabilizing around $3315 per ounce at the time of writing this analysis. Contributing to the rise of gold prices to the $3500 peak was the recent dispute between Trump and the US Federal Reserve Governor Jerome Powell, with the former threatening to dismiss him, which increased negative sentiment in the markets and drove investors to buy gold strongly as a safe haven.
Why Have Gold Prices Declined Recently?
According to recent trading activity across gold trading platforms, gold prices declined technically after all technical indicators tested extreme overbought levels, which was evident in the readings of the Relative Strength Index (RSI) and the MACD indicator recently. This is in addition to improved investor sentiment after US President Trump stated that he does not plan to dismiss Federal Reserve Chairman Jerome Powell, which eased concerns about the politicization of US monetary policy. Furthermore, hopes for easing trade tensions between the United States and China boosted sentiment following statements from both President Trump and Treasury Secretary Scott Pisent.
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Trading Advice:
The trend for gold prices will remain upward for a long period of time.
Will Gold Prices Rise in the Coming Days?
Despite the recent selloffs, the overall trend for gold prices remains bullish and may continue to be so for a longer period. Global geopolitical and trade tensions, as well as record central bank purchases of gold bullion, will continue to be strong positive factors for spot gold prices in the coming days. Currently, we expect gold investors to take advantage of the recent declines to consider buying gold again. Also, the closest support levels for gold prices currently at $3265, $3220, and $3180 will be the most suitable for buying, but without taking risks and by monitoring the factors affecting prices to seize the best trading opportunities. Keep in mind that the US dollar price is still in its strongest bearish range in 3 years.
Since the beginning of trading this year, gold bullion prices have risen by 32 percent, outperforming almost all other major asset classes, as investors flee from stock prices exposed to an escalating trade war. Usually, traders turn to US government debt in times of risk aversion. However, given the recent sell-off in US Treasury bonds and the overall US financial situation, gold is now the only remaining true safe haven.
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