Gold Prices Rise Amid Weaker Dollar – Key Resistance at $2,736

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Gold prices extended their gains for a second session, climbing to $2,726.03, up 0.30%, as the U.S. dollar weakened following reports that trade tariffs under President Donald Trump’s administration may be introduced gradually.

The dollar index (DXY) fell 1%, making gold more attractive to foreign investors. Analysts believe this measured approach to tariffs has eased market concerns, shifting sentiment toward safe-haven assets like gold.

IG market strategist Yeap Jun Rong noted that while immediate trade tensions have eased, gold remains an appealing hedge, with $2,720 as a key resistance level. Traders are closely monitoring the administration’s policy moves, as Trump’s proposed tariffs—up to 10% on global imports, 60% on Chinese goods, and 25% on Canadian and Mexican products—could influence inflation and monetary policy.

Despite gold’s appeal as an inflation hedge, higher interest rates driven by inflationary policies could dampen demand. Investors are keenly watching the Federal Reserve’s next moves, which will largely depend on how quickly Trump’s administration rolls out its trade policies.

Key Market Factors:

  • Trump’s proposed tariffs could impact inflation and gold demand.

  • Weaker dollar boosts gold’s attractiveness to international buyers.

  • Federal Reserve policies remain a key influence on gold prices.

Technical Analysis: Key Levels to Watch

Gold is holding firm above the pivot point at $2,712.41, reinforcing a bullish outlook. The immediate resistance at $2,736.96 remains a critical hurdle, with further resistance levels at $2,751.65 and $2,767.99, where sellers may emerge. On the downside, gold finds immediate support at $2,689.82, with deeper levels at $2,677.23 and $2,662.86, which could act as key rebound zones if price retraces.

The 50-day EMA at $2,689.82 continues to provide solid support, indicating the uptrend remains intact. A sustained move above resistance at $2,736.96 could push prices toward higher levels, while a break below the pivot could trigger a correction toward lower support zones.

Technical Levels Summary:

  • Resistance: $2,736.96, $2,751.65, $2,767.99

  • Support: $2,689.82, $2,677.23, $2,662.86

  • 50-day EMA: $2,689.82

Market Outlook and Conclusion

Gold’s bullish momentum hinges on its ability to sustain levels above $2,712.41, with potential for further gains if resistance levels are breached. However, uncertainty surrounding U.S. trade policies and potential Federal Reserve responses to inflationary pressures could influence gold’s trajectory.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart – Source: Tradingview

Investors should remain attentive to geopolitical developments and economic indicators that could sway market sentiment. With Trump’s administration likely to introduce policies gradually, gold may continue to serve as a hedge in uncertain economic conditions.

Key Takeaways:

  • Gold remains bullish above $2,712.41, targeting $2,736.96 resistance.

  • The 50-day EMA at $2,689.82 acts as critical support.

  • U.S. policy decisions will be key drivers of gold’s next move.

This balanced outlook provides traders with a clear perspective on gold’s potential price movements amid evolving macroeconomic factors.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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