Gold continues its upward trajectory after an early sell-off, with analysts anticipating that the precious metal could ‘go even higher.’
Notably, an analysis by RLinda notes that gold is hovering near a key zone of interest, where it may experience a minor pullback before resuming its climb.
At press time, gold is trading at $2,822, bouncing back from a sharp decline that saw prices briefly drop to $2,772. The metal quickly recovered from the intraday dip, indicating strong buying pressure despite broader market volatility.
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Gold technical analysis: Key levels to watch
Gold’s price action suggests a potential retracement before its next move higher, with key support and resistance levels defining the next phase of momentum. The metal recently rebounded off the 0.5 Fibonacci retracement level at $2,771, which acts as a strong support.
However, traders are closely watching the $2,802 to $2,808 zone, which aligns with the 0.705 to 0.79 Fibonacci retracement range as a short-term resistance level.
A decisive breakout above this zone could pave the way for a rally toward $2,817, with a further push possibly targeting $2,834.
On the downside, the $2,795 and $2,790 support levels remain crucial for sustaining bullish momentum, while the previous breakout level at $2,771 may serve as a deeper support zone if selling pressure increases
Key factors driving Gold price
Gold prices are being influenced by a mix of geopolitical tensions, inflation concerns, Federal Reserve policy expectations, and broader market volatility.
The market is experiencing increased turbulence as investors react to uncertainty surrounding President Donald Trump’s tariffs on imports from Canada, Mexico, and China.
This has fueled economic uncertainty, prompting investors to turn to gold as a hedge against potential market instability
Meanwhile, the strengthening U.S. dollar and robust economic data have created short-term resistance for gold.
The latest Personal Consumption Expenditures (PCE) data showed a sharp uptick in consumer spending, further strengthening the concerns that inflationary pressures remain high.
This has led to speculation that the Federal Reserve may delay interest rate cuts. While this has supported the dollar, it has not significantly dented gold’s upward momentum, as inflationary pressures continue to drive demand for gold.
“The trend is not broken and interest in the metal due to growing risks is also growing”-the analyst noted
Looking ahead, traders will closely monitor upcoming inflation figures and job reports, which could influence the Fed’s next policy decision.
With global markets on edge, AI-driven models have set a year-end target of $3,200 for gold, further supporting the bullish outlook. If macroeconomic risks persist, gold’s momentum could push it toward new record highs, making it a key asset to watch in the coming weeks.
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