Gold continues to showcase remarkable strength in global markets, with recent rallies reflecting investor confidence and rising safe-haven demand. Despite minor corrections, gold (XAU/USD) maintains its bullish posture amid global uncertainties.
π Recent Rally and Market Structure
From mid-December to late February, gold prices surged from $2,620 to a high of $2,963.20βan impressive $343 rally. The key technical takeaway? Even the corrections during this period were shallow and controlled:
- β First correction: $122 drop (~35% retracement)
- β Second correction: From $3,065 to $3,007 (~23.6% retracement)
This price action suggests deep-rooted market strength and sustained investor appetite for gold.
π¦ Fed Policy & PCE Data in Focus
The Federal Reserve’s upcoming stance and the anticipated Personal Consumption Expenditures (PCE) data are major catalysts for goldβs next move. A dovish tone or signs of sticky inflation could further elevate goldβs appeal as a hedge against economic risk.
π Global Factors Supporting Gold
- πΊπΈ US Dollar Index has weakened slightly, favoring gold.
- π Trade tensions with China and geopolitical risks in the Middle East are boosting safe-haven demand.
- π Gold futures for April are holding firm at $3,025.90, showing a 0.34% gain.
- π¦πΊ In Australian trading, prices reached $3,026.10, reinforcing global demand.
π Technical View
Despite the recent rally, gold remains overbought on several indicators. However, shallow pullbacks and strong trendlines indicate a bullish continuation:
- Support levels: $3,000 / $2,980
- Resistance levels: $3,050 / $3,080
π What to Watch
- πΉ PCE inflation report this week
- πΉ Fed rate cut expectations
- πΉ USD Index fluctuations
- πΉ Ongoing geopolitical tensions
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