Gold Rally Pauses, But Bullish Trend Holds
Gold hit an all-time high of $3,167.84 earlier this week amid safe-haven buying sparked by President Trump’s new tariffs and China's retaliatory duties, which intensified global recession fears. The resulting forced selling in equities caused a brief pullback in gold prices. However, this dip is seen as mechanical, not sentiment-driven, with gold still up over 15% this year, supported by central bank buying, strong institutional interest, and ETF inflows. The pullback is likely temporary unless new macroeconomic shifts emerge.
Ongoing Risks Support Gold’s Long-Term Bullish Outlook
Despite recent market volatility, the drivers behind gold’s rally remain intact. Mohamed El-Erian raised U.S. recession odds to 50%, while Goldman Sachs raised theirs to 35%. The Fed has warned of slower growth and higher inflation due to tariffs, and gold's role as a hedge against these risks is vital.
Focus on Upcoming Data
Next week, key data will be in focus: the FOMC minutes on Wednesday, CPI report on Thursday, and consumer sentiment data on Friday. If CPI surprises to the upside or the FOMC minutes reveal a more dovish stance, gold could see renewed buying interest. Traders should view pullbacks as buying opportunities, as inflation, trade tensions, and recession risks continue to support gold.
Technical Outlook
If gold tests support at $3,000.28 and holds, it may attract new buyers. A break below could bring the $2,852.34 level into play. Shorting is risky, but if pursued, exit over $3,167.84 with objectives at $3,000.28, $2,852.34, and the 52-week moving average at $2,601.40.
Gold hit an all-time high of $3,167.84 earlier this week amid safe-haven buying sparked by President Trump’s new tariffs and China's retaliatory duties, which intensified global recession fears. The resulting forced selling in equities caused a brief pullback in gold prices. However, this dip is seen as mechanical, not sentiment-driven, with gold still up over 15% this year, supported by central bank buying, strong institutional interest, and ETF inflows. The pullback is likely temporary unless new macroeconomic shifts emerge.
Ongoing Risks Support Gold’s Long-Term Bullish Outlook
Despite recent market volatility, the drivers behind gold’s rally remain intact. Mohamed El-Erian raised U.S. recession odds to 50%, while Goldman Sachs raised theirs to 35%. The Fed has warned of slower growth and higher inflation due to tariffs, and gold's role as a hedge against these risks is vital.
Focus on Upcoming Data
Next week, key data will be in focus: the FOMC minutes on Wednesday, CPI report on Thursday, and consumer sentiment data on Friday. If CPI surprises to the upside or the FOMC minutes reveal a more dovish stance, gold could see renewed buying interest. Traders should view pullbacks as buying opportunities, as inflation, trade tensions, and recession risks continue to support gold.
Technical Outlook
If gold tests support at $3,000.28 and holds, it may attract new buyers. A break below could bring the $2,852.34 level into play. Shorting is risky, but if pursued, exit over $3,167.84 with objectives at $3,000.28, $2,852.34, and the 52-week moving average at $2,601.40.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
GOLDFXCC™ Leading Educational platform—whether you're just starting or an experienced trader, access knowledge and insights to refine your skills and achieve more.
➤ Telegram: t.me/+OYfvKDvM0w81MTJk
♛ Website: bio.site/goldfxcc.com
➤ Telegram: t.me/+OYfvKDvM0w81MTJk
♛ Website: bio.site/goldfxcc.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.