Gold Price Analysis: Bullish Momentum Stays Strong Despite Minor Pullbacks

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.

🔍 Recent Rally and Market Structure

From mid-December to late February, gold prices surged from $2,620 to a high of $2,963.20—an impressive $343 rally. The key technical takeaway? Even the corrections during this period were shallow and controlled:

• ✅ First correction: $122 drop (~35% retracement)
• ✅ 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.

🏦 Fed Policy & PCE Data in Focus

The Federal Reserve’s upcoming stance and the anticipated Personal Consumption Expenditures (PCE) data are major catalysts for gold’s next move. A dovish tone or signs of sticky inflation could further elevate gold’s appeal as a hedge against economic risk.

🌍 Global Factors Supporting Gold

• 🇺🇸 US Dollar Index has weakened slightly, favoring gold.
• 🌐 Trade tensions with China and geopolitical risks in the Middle East are boosting safe-haven demand.
• 📊 Gold futures for April are holding firm at $3,025.90, showing a 0.34% gain.
• 🇦🇺 In Australian trading, prices reached $3,026.10, reinforcing global demand.

📊 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

📅 What to Watch

• 🔹 PCE inflation report this week
• 🔹 Fed rate cut expectations
• 🔹 USD Index fluctuations
• 🔹 Ongoing geopolitical tensions

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