The Gold price has overtaken the $2,200 level and this time it is holding the gains as Asian demand for Gold surges. Gold is making new milestones every week and with the economic and political uncertainty remaining high around the globe, it’s hard to pinpoint where the rally will stop.

Gold Chart Daily – MAs Can’t Catch Up With the XAU Price

The Gold market is currently experiencing a significant rally, despite modest strength in the US dollar and hawkish comments from Fed Governor Waller, who is often seen as a mouthpiece for Powell. GOLD has emerged as a standout performer yesterday, rising $40 to $2233, marking the first daily close above $2200. From a technical perspective, this rally is characterized by an upside-down head and shoulders pattern, with a target price of $2,500, which is not so far considering the surge recently.

Physical Gold Demand Coming from China, Russia and the Middle East

One notable aspect of this Gold bullion surge is the relatively subdued participation from retail investors and the investing community. Silver (XAG) has not reached new highs, and Gold miners continue to face challenges. This suggests that the current surge in Gold prices is being driven primarily by demand from Asia, particularly China, as well as the Middle East, as evidenced by Switzerland’s export figures.

The recent geopolitical events, particularly actions taken by the United States and Europe to seize Russian financial assets, are seen as a major catalyst for the ongoing bull market in Gold, as the funds usually head to Gold. Looking ahead, the next significant driver for the Gold market is anticipated to be the PCE core inflation data from the US, which should have some impact on the Federal Reserve interest rate cut expectations and might potentially send the US dollar lower. That would be bullish for XAU/USD. While there is optimism about the dollar in general, the expectation is that as fiscal support runs out in 2026, it may begin to fade, potentially prompting increased interest from retail investors in Gold.

Gold Live Chart