Gold prices have declined despite the sharp sell-off in equity markets, as some investors liquidated their gold holdings to raise cash and avoid forced selling. Nevertheless, the long-term outlook for gold remains supported by persistent global uncertainties and the rising risk of a prolonged US-China trade conflict. With the United States pledging to impose tariffs of up to 104% on Chinese goods and no sign of de-escalation, gold could benefit from increased safe-haven demand in the longer term.
Technical Breakout:
From a technical perspective, gold is currently testing its upward trendline and support level around 2955.00. The MACD indicator shows signs of diminishing bearish momentum, while the RSI is at 30 and attempting to rebound from oversold territory. If bullish momentum builds, prices could retest the resistance levels at 3005.00. However, if the price breaks below the trendline and the 2955.00 support, the downtrend may resume with the next key support at 2880.00.
Potential Risks: Ongoing U.S.-China trade tensions could fuel further volatility on the gold movement.
Monitoring: Stay updated on potential trade tensions between US and world to gauge the likelihood movement for several asset classes.
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Gold prices have declined despite the sharp sell-off in equity markets, as some investors liquidated their gold holdings to raise cash and avoid forced selling. Nevertheless, the long-term outlook for gold remains supported by persistent global uncertainties and the rising risk of a prolonged US-China trade conflict. With the United States pledging to impose tariffs of up to 104% on Chinese goods and no sign of de-escalation, gold could benefit from increased safe-haven demand in the longer term.
Technical Breakout:
From a technical perspective, gold is currently testing its upward trendline and support level around 2955.00. The MACD indicator shows signs of diminishing bearish momentum, while the RSI is at 30 and attempting to rebound from oversold territory. If bullish momentum builds, prices could retest the resistance levels at 3005.00. However, if the price breaks below the trendline and the 2955.00 support, the downtrend may resume with the next key support at 2880.00.
Potential Risks: Ongoing U.S.-China trade tensions could fuel further volatility on the gold movement.
Monitoring: Stay updated on potential trade tensions between US and world to gauge the likelihood movement for several asset classes.
Open Your Free Demo Account And Start Trading Risk-Free
Join Now
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.