Gold Approaches Two-Week High, Driven by U.S. Fiscal Concerns and Weakened Dollar
Gold Spot(XAUUSD)
Fundamental Analysis
Gold prices continue to rise, approaching $3,340/oz — the highest level in two weeks — driven by increasing safe-haven demand amid concerns over U.S. fiscal stability and a weakening dollar. CBA forecasts gold could reach $3,750 by Q4, as risks persist from soaring U.S. debt ($36 trillion), high bond yields, and potential conflict with Iran.
Moody’s recently downgraded the U.S. credit rating, while markets are growing wary of the impact from President Trump’s multi-trillion-dollar tax cut proposal. Additionally, China has ramped up gold imports, reflecting rising physical demand amid escalating trade tensions.
Technical Analysis
Gold is in a clear uptrend, confirmed by a rising structure of higher highs and higher lows. The price has broken above the key resistance level at $3,311 and is now targeting the upper supply zone and price gap above. This bullish move is supported by strong EMA alignment and volume activity.
The RSI is currently at 70.36, entering the overbought zone. While this reflects strong bullish momentum, a potential
technical pullback should be watched for if RSI fails to hold higher levels.Trading volume surged during the breakout phase from the $3,212–$3,250 range, confirming aggressive buying interest. Volume remains elevated, which continues to support the upward move.
Disclaimer
Derivative investments involve significant risks that may result in the loss of your invested capital. You are advised to carefully read and study the legality of the company, products, and trading rules before deciding to invest your money. Be responsible and accountable in your trading.
RISK WARNING IN TRADING
Transactions via margin involve leverage mechanisms, have high risks, and may not be suitable for all investors. THERE IS NO GUARANTEE OF PROFIT on your investment, so be cautious of those who promise profits in trading. It's recommended not to use funds if you're not ready to incur losses. Before deciding to trade, make sure you understand the risks involved and also consider your experience.
