After temporarily surpassing $3,000 last week, Friday hit a record high of $3,005.04 before retreating. Metals are supported by the demand for safe havens, and traders are closely monitoring the Federal Reserve's policy stance. A break above $3,005.04 indicates a continuing uptrend, while a drop below $2,978.50 could confirm a short-term reversal, potentially leading to a further decline to $2,942.64 and a lower support of $2,880.25. The 50-day moving average of $2,838.00 remains at a significant level of intermediate trends.
Independent analyst Ross Norman believes it is continuing, citing strong buy interest on prices driven by FOMO (Fear of Missing). He expects the gold to reach $3,150 faster than previously expected.
Focusing on economic concerns and FOD policies
US Treasury Secretary Scott Bescent warned on Sunday that a recession still could be, increasing investors' concerns about economic uncertainty. US stocks fell sharply last week as trade tensions escalated, further increasing demand for gold as a hedge.
The Federal Reserve Monetary Policy Conference on Wednesday is a key event for traders. The central bank is expected to not change interest rates after cutting 100 basis points since September. Low interest rates typically support gold by reducing the opportunity costs of holding non-2 assets.
UBS recognized gold's acquisition of technical status, but emphasized that investors were cautious about US stocks and were confident in the strength of gold.
Gold price forecast: bullish outlook with key resistance levels
Gold is well supported by economic uncertainty and Dovish Fed Outlook. Short-term pullbacks are possible, but strong demand for dips and ongoing geopolitical risks suggest bullish bias. A sustained break above $3,005.04 could lead to an additional rise at $3,150 as its next major target. However, failing to hold support at $2,978.50 could increase sales pressure.
