Gold Price Slips from Record Highs – Can XAU/USD Maintain Bullish Momentum?

Profit-Taking Triggers Pullback, but Trade War Fears Keep Gold’s Safe-Haven Appeal Intact

Gold prices retreated slightly on Monday, with XAU/USD falling to $2,925 in the Asian session, down 0.38% for the day. The pullback comes after gold hit a new all-time high of $2,954 last week, prompting investors to lock in profits. However, growing fears of a global trade war, fueled by US President Donald Trump’s tariff plans, could keep safe-haven demand elevated, limiting further downside.

Despite short-term selling pressure, fundamental support for gold remains strong, with rising inflation concerns, geopolitical tensions, and central bank policies all reinforcing the bullish outlook for the precious metal.

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Gold Price Technical Analysis – Key Levels to Watch

📊 Technical Indicators Show Short-Term Weakness but Long-Term Strength
✅ XAU/USD faces initial resistance near $2,950, its recent all-time high.
✅ The 50-period EMA supports gold’s uptrend, currently sitting at $2,900.
✅ RSI remains in overbought territory, indicating potential for a short-term correction.

📈 Resistance Levels to Watch:

$2,950 – Immediate resistance, previous all-time high.
$3,000 – Psychological milestone.
$3,050 – Extended breakout target.

📉 Support Levels to Watch:

$2,900 – Key technical and psychological level.
$2,875 – First Fibonacci retracement support.
$2,850 – Deeper correction level if selling pressure intensifies.

Fundamental Drivers – What’s Moving Gold Prices?

📌 Profit-Taking Triggers Pullback, but Bullish Fundamentals Remain

Gold retraced from $2,954 on profit-taking, but analysts say the overall trend remains intact.
“It’s a classic move after an all-time high, but gold’s fundamentals remain strong,” said Alex Ebkarian, COO at Allegiance Gold.

📌 Trump’s Tariff Plans Fuel Safe-Haven Demand

Trump’s announcement of new tariffs on lumber, cars, semiconductors, and pharmaceuticals is raising concerns over global trade tensions.
Peter Grant, VP at Zaner Metals, noted that ongoing trade disputes could increase inflation concerns, driving investors to gold.

📌 Federal Reserve’s Hawkish Stance Limits Upside

FOMC minutes from January suggested that rising inflation concerns could delay further Fed rate cuts.
A stronger US dollar could weigh on gold prices, as USD strength makes gold more expensive for international buyers.

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Conclusion – What’s Next for Gold Prices?

💡 Market Outlook:
✅ Gold needs to hold above $2,900 to sustain its bullish trend.
✅ If profit-taking continues, further declines toward $2,875 or $2,850 are possible.
✅ A breakout above $2,950 could push XAU/USD toward $3,000 in the near term.

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Yasher Rizwan