Gold Price Prediction: $4,960 Holds as Bulls Eye a $5,010 Breakout
Despite yields and interest rates taking a back seat, gold has just gone on another big run, pushing over $4,950 as investors rotate...
Quick overview
- Gold prices have surged over $4,950 as investors seek safe-haven assets amid geopolitical tensions and softening US interest rate expectations.
- The current market environment, characterized by global growth concerns, has led to a significant increase in gold's appeal among both institutional and individual investors.
- Despite a temporary easing of trade tensions related to Greenland, the overall trend for gold remains positive, with key support levels identified at $4,925.
- Technical indicators suggest strong momentum for gold, but caution is advised as it may be approaching overbought conditions.
Despite yields and interest rates taking a back seat, gold has just gone on another big run, pushing over $4,950 as investors rotate more into safe-haven assets. The surge seems to be driven by a combination of geopolitical tensions, softened expectations for future US interest rates, and ongoing buying from central banks. And with global growth concerns flaring back to life and the dollar suddenly losing steam, gold is finding a solid following across both institutional and individual investors.
This week, gold is hurtling towards a gain of more than 7% – and that’s putting quite a few investors on their toes. History says, gold does its best when confidence in how the money system is run and the overall state of things gets a bit shaky – and right now the signs are all over that map.
The Reason Behind Rising Gold Prices
The problems in Venezuela, Iran, and the latest Greenland diplomatic fiasco are keeping investors’ risk appetite on a tight leash. And when that happens, money tends to flock to assets that are rock-solid, defensive, and dependable – and gold is naturally one of the first places people look.
The other big player in all this is the US Fed, which is in a bit of a crisis of confidence at the moment. Speculation is rife about who might come in to replace Jerome Powell and worries are rising that the next leader might want to ease off on interest rates – a move that would send gold prices a-peeling even higher.
But remember, steady buying by central banks has always provided a solid foundation for gold’s price over the long term – even if there are a few short-term wobbles.
Greenland Deal Relieves Some Pressure
But all is not smooth sailing just yet. President Trump’s call to delay tariffs on European countries that were tied up in trade talks over Greenland and NATO co-op has taken a bit of the heat off – snapping back markets and possibly dampening any gold-buying spree.
And yet , even with the worst of the fears eased, the overall direction of the market hasn’t changed. The trend remains intact, but maybe just less high-octane now.
XAU/USD Technical Outlook: The bulls are defending the $4,925 price level
Back to the charts – gold is now trading at about $4,960, well positioned inside a rising channel on the two-hour graph. The last few candles show a mix of small bodies and low upper wicks near resistance – that’s a pretty good sign that buyers are getting pretty careful.
Here are the key things to watch for in the technicals:
- Support : $4,925 ( a Fibonacci level at 3.618), then $4,858, and all the way down to $4,818
- Resistance : $4,970 to $5,010 near the top of that channel
- RSI : Has got up to 72, and that tells us that the momentum is strong, but also that we might be a bit overbought
As long as gold stays above $4,925, we can still say the structure is still pretty positive.
Trade idea: Buy dips near $4,925, looking to go for $5,010, with a stop-loss below $4,880.
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