GOLD runs into $4,380 resistance again, bullish potential still intact
Gold’s parabolic rally once again stalls near $4,380 as profit-taking seeps in ahead of US-China trade talks.
US Dollar looks to revive its recovery amid US-China trade woes, risk flows, and extended US shutdown.
Gold could find fresh buyers at the channel resistance-turned-support near $4,285, if the correction extends.
Gold is pulling back toward $4,300 early Tuesday, after having faced rejection once again near the $4,380 region. The focus remains on the US-China trade talks amid broader market uncertainty.
Nothing seems to have changed for Gold from a fundamental standpoint.
However, markets have turned hopeful that the US and China could reach a trade deal as high-level talks resume this week.US Treasury Secretary Scott Bessent said on Friday he expects to meet this week with Chinese Vice Premier He Lifeng in Malaysia to de-escalate the renewed trade tensions.
Easing US-China trade concerns revive the USD recovery, capping the Gold price upside.
White House Economic Adviser Kevin Hassett said on Monday the government shutdown could likely end this week, boosting risk sentiment further and acting as a headwind to Gold’s record-setting rally.
That said, Gold remains a go-to safe haven asset and a ‘buy-on-pullbacks’ trade as investors face uncertainty ahead of the critical US CPI release on Friday and key earnings reports from big US companies.
Meanwhile, growing bets of two Fed interest rate cuts keep bargain-hunting demand for the bright metal intact.
Furthermore, markets digest the latest tariff tantrum by US President Donald Trump as he threatened late Monday to impose 155% tariffs on China from November 1 unless they make a deal.
All in all, Gold traders will continue to monitor US-China trade updates and broader market sentiment for fresh directives.
Daily technical analysis
As Gold has been recording all-time highs each day for a week, the immediate hurdle is seen at the $4,380 supply zone, above which the $4,400 must be conquered.The next resistance is seen at the $4,450 psychological level, followed by the $4,500 mark.
The 14-day RSI is easing further from the extreme overbought zone, currently near 78.50, suggesting that buyers could be prepping up for a fresh leg higher on pullbacks.
To the downside, the rising channel resistance-turned-support at $4,285 could limit the correction.
A sustained move below that level could open further declines toward the actual channel support at $4,136.
The natural tendency of the rising channel formation is a break to the downside and hence, a daily candlestick close below the latter could confirm a bearish breakdown, initiating a fresh downtrend toward the $4,001, where the 21-day SMA aligns.
GOLD runs into $4,380 resistance again, bullish potential still intact
Gold is pulling back toward $4,300 early Tuesday, after having faced rejection once again near the $4,380 region. The focus remains on the US-China trade talks amid broader market uncertainty.
Nothing seems to have changed for Gold from a fundamental standpoint.
However, markets have turned hopeful that the US and China could reach a trade deal as high-level talks resume this week.US Treasury Secretary Scott Bessent said on Friday he expects to meet this week with Chinese Vice Premier He Lifeng in Malaysia to de-escalate the renewed trade tensions.
Easing US-China trade concerns revive the USD recovery, capping the Gold price upside.
White House Economic Adviser Kevin Hassett said on Monday the government shutdown could likely end this week, boosting risk sentiment further and acting as a headwind to Gold’s record-setting rally.
That said, Gold remains a go-to safe haven asset and a ‘buy-on-pullbacks’ trade as investors face uncertainty ahead of the critical US CPI release on Friday and key earnings reports from big US companies.
Meanwhile, growing bets of two Fed interest rate cuts keep bargain-hunting demand for the bright metal intact.
Furthermore, markets digest the latest tariff tantrum by US President Donald Trump as he threatened late Monday to impose 155% tariffs on China from November 1 unless they make a deal.
All in all, Gold traders will continue to monitor US-China trade updates and broader market sentiment for fresh directives.
Daily technical analysis
As Gold has been recording all-time highs each day for a week, the immediate hurdle is seen at the $4,380 supply zone, above which the $4,400 must be conquered.The next resistance is seen at the $4,450 psychological level, followed by the $4,500 mark.
The 14-day RSI is easing further from the extreme overbought zone, currently near 78.50, suggesting that buyers could be prepping up for a fresh leg higher on pullbacks.
To the downside, the rising channel resistance-turned-support at $4,285 could limit the correction.
A sustained move below that level could open further declines toward the actual channel support at $4,136.
The natural tendency of the rising channel formation is a break to the downside and hence, a daily candlestick close below the latter could confirm a bearish breakdown, initiating a fresh downtrend toward the $4,001, where the 21-day SMA aligns.
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