Gold Prices Near 3-Month Highs Amid U.S. Policy Uncertainty – Key Levels to Watch

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Gold prices surged to near three-month highs on Friday, driven by ongoing uncertainty surrounding U.S. President Donald Trump’s trade policies.

The precious metal is poised for a fourth consecutive weekly gain as the U.S. dollar faces its worst weekly decline in two months. The dollar index (DXY) fell over 1% this week, making gold more attractive to foreign investors.

“The dollar slipped after Trump refrained from implementing aggressive tariffs post-inauguration, which went against market expectations,” said Jigar Trivedi, senior analyst at Reliance Securities.

Trump’s recent call for an immediate interest rate cut and the absence of clear direction on trade policies have further fueled market uncertainty, leading investors to seek refuge in safe-haven assets like gold. The lack of policy clarity has pushed traders toward gold, driving its demand higher amid market volatility.

 

XAU/USD

Upcoming central bank meetings, including the Bank of Japan’s expected rate decision on Friday and the Federal Reserve and ECB’s meetings next week, could influence gold’s short-term trajectory.

Key Technical Levels to Watch

Gold’s current trading price of $2,772.40 suggests strong bullish momentum within an ascending channel. The bullish engulfing candle pattern observed in recent sessions signals further potential upside above the $2,765 pivot level.

Key resistance levels:

  • Immediate resistance at $2,776.93, which, if breached, could drive prices to the next level at $2,787.83, followed by the psychological barrier at $2,800.28.

Key support levels:

  • Immediate support stands at $2,748.76, with further downside at the 50-day EMA of $2,740.98, a crucial zone for maintaining the current uptrend.

The 50-day EMA is reinforcing the bullish outlook, while a break below it could shift momentum toward the next major support at $2,724.46.

Market Outlook Amid Economic Uncertainty

Investors remain focused on the upcoming central bank decisions, with the Fed’s policy stance being a key factor in gold’s performance. Market participants see little chance of a Fed rate hike, which historically supports non-yielding assets like gold.

Traders are also eyeing Trump’s next policy moves, particularly on trade tariffs and economic stimulus measures, which could further impact the dollar and, in turn, gold prices.

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

Analysts suggest that gold could test new all-time highs in the coming weeks if uncertainty persists. “There is a possibility of gold hitting record levels soon, and the outlook remains positive,” said Trivedi.

Key Takeaways:

  • Gold’s bullish trend is reinforced by a strong technical structure, with a key pivot at $2,765.

  • Resistance at $2,776.93, with further upside potential toward $2,800, if market momentum sustains.

  • A break below $2,740.98 (50 EMA) could trigger corrective selling pressure.

As uncertainty looms over U.S. policy direction, gold remains a preferred hedge for investors seeking stability in turbulent markets.

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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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