The price of gold remains stable near its all-time high and looks on US macro data for a temporary boost

Gold (XAU/USD) maintains its positive momentum heading into the European session on Tuesday, trading just above the $2,750 mark and remaining close to last week’s record high. Persistent geopolitical concerns and rising political uncertainty in the U.S. are boosting demand for the safe-haven metal. Additionally, a softer trend in U.S. Treasury yields and a cautious market sentiment are further supporting gold prices.

At the same time, expectations for smaller rate cuts from the Federal Reserve (Fed) are likely to support U.S. bond yields, which in turn could limit any major gains for the non-yielding metal by aiding the U.S. Dollar’s recovery from recent losses. Investors may also be holding back on new bullish positions as they await key U.S. economic releases this week, which are expected to offer further insight into the Fed's rate outlook and set the stage for gold's next move.

Technical Outlook: Gold's Near-Term Path Dependent on Breakout from Range

On the technical side, a sustained move above the $2,750 resistance could trigger renewed buying interest, potentially lifting gold prices beyond the all-time high near $2,759 and toward a longer-term resistance around the $2,770-$2,775 zone. A continued push could bring the psychological $2,800 level into play.

However, the daily Relative Strength Index (RSI) is approaching overbought territory, suggesting caution for bullish traders. A brief period of consolidation or a modest pullback may be advisable before committing to additional upside moves.

In the event of a pullback, immediate support is likely around the recent swing low at $2,725, followed by the $2,715 level, which forms the lower boundary of a one-week trading range. A decisive break below this support could prompt further technical selling, with the next downside targets at the $2,700 and $2,675 levels, potentially extending toward the $2,657-$2,655 horizontal support zone.

Paraphrasing text from "FX Street" all rights reserved by the original author.