Gold Price Stays Near February Peak, Focus Shifts to US PPI Data

Image Credit: Bloomberg

Gold (XAU/USD) maintains its bullish trend during the early European session on Thursday, staying near the all-time high reached on February 24. The ongoing uncertainty around the implementation of US President Donald Trump’s trade tariffs and their potential global economic impact continues to drive investors toward gold as a safe haven for the third consecutive day.

Concerns over a potential US recession, signs of a softening labor market, and declining inflation are expected to prompt the Federal Reserve (Fed) to begin its rate-cutting cycle sooner than anticipated. This has kept the US Dollar (USD) near its lowest level since October 16, further supporting gold’s rise. 

From a technical perspective, gold’s sustained move above the $2,928-$2,930 resistance zone strengthens the case for a challenge of its all-time high around $2,956, set on February 24. With the oscillators still in positive territory, there is potential for further buying momentum, reinforcing the current uptrend that has been in place for the past three months.

On the downside, the $2,930-$2,828 resistance range now acts as a key support zone. A break below this level could accelerate the decline towards intermediate support at $2,912-$2,910, followed by the psychological $2,900 level. If the price continues to drop, the weekly low near $2,800 could come into play, with $2,860 acting as another support. A decisive break of this zone could lead to deeper losses, potentially pushing gold to the late February swing low around $2,833-$2,832, and eventually towards the $2,800 mark.

Paraphrasing text from "FXSTREET" all rights reserved by the original author