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.

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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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