Gold Prices Surge to $2,659: Key Resistance at $2,680 in Focus
Gold has climbed to $2,659.39, bolstered by a softer U.S. dollar and increased safe-haven flows.
The metal is set to achieve weekly gains as market attention shifts to U.S. President Donald Trump’s proposed policy changes, which are expected to reshape the economic and interest rate outlook. Meanwhile, geopolitical tensions and inflationary expectations have further fueled demand for gold as a hedge against uncertainty.
Gold Rallies on Geopolitical Tensions and Policy Shifts
In the international market, gold began 2025 on a bullish note, crossing the $2,660 mark, while silver surpassed $29.40. Investors are closely monitoring Trump’s anticipated policy shifts, including higher tariffs and tax cuts, which could introduce inflationary pressures and make gold a more attractive investment. The yellow metal’s recent rally highlights its role as a go-to safe-haven asset during periods of geopolitical and economic instability.
Economic data also plays a significant role in shaping sentiment. The upcoming ISM manufacturing report, expected later today, will likely provide direction for both the U.S. dollar and gold prices. Market participants are watching closely for any signs of weakness in manufacturing that could strengthen gold’s upward trajectory.
Technical Outlook: Key Levels to Watch for Gold
Gold’s technical indicators reflect a bullish outlook, supported by a break above a descending triangle. The metal is trading above its 50-day EMA at $2,651.94, reinforcing its upward momentum. The Relative Strength Index (RSI) at 62 signals moderate buying pressure, leaving room for further gains.
Key resistance levels include $2,680.35, $2,700.88, and $2,724.50. Breaking these barriers could pave the way for additional upside, especially as geopolitical uncertainties persist. On the downside, immediate support is seen at $2,630.05, followed by $2,602.65, which aligns with an upward trendline offering robust support.
Key Insights:
Bullish Momentum: Gold is trading above its 50-day EMA, maintaining a bullish trajectory.
Critical Levels: Resistance lies at $2,680.35 and $2,700.88, while support levels include $2,630.05 and $2,602.65.
Market Factors: Geopolitical tensions and U.S. policy expectations continue to drive safe-haven demand for gold.
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