Gold Prices Retreat Below $2,900 as US Dollar Rebounds from Multi-Month Low

Gold prices fell below $2,900 on Monday, as the US Dollar (USD) rebounded from a multi-month low. Despite weaker US labor market data, a mild recovery in Treasury yields and uncertainty around Trump’s tariff policies have put pressure on the yellow metal.

Key Market Movers: Why is Gold Falling?

1️⃣ US Dollar Rebounds

• The USD Index (DXY) bounced from its lowest level since November, weighing on XAU/USD.
• Higher interest rate expectations in the US could further limit gold’s upside.

2️⃣ Federal Reserve Rate Cut Bets

• Recent weaker US employment data increased bets that the Fed could cut rates this year.
• However, the pace of rate cuts remains uncertain, capping gold’s rally.

3️⃣ Trump’s Trade Policies Create Market Jitters

• US President Donald Trump continues to threaten new tariffs, impacting global markets.
• Uncertainty over trade war effects fuels safe-haven demand for gold but also strengthens USD.

Gold Price Outlook: Key Levels to Watch

📉 Support Levels:

• $2,895 – Strong horizontal support zone
• $2,860-$2,858 – Potential deeper correction
• $2,800 – Psychological round number

📈 Resistance Levels:

• $2,925-$2,930 – Key supply zone
• $2,956 – All-time high reached on Feb 24
• $3,000 – Psychological target

Technical Analysis: Is Gold Headed for a Pullback?

• Oscillators remain in positive territory, but losing momentum.
• Repeated failures to break above $2,930 could trigger further corrections.
• A break below $2,895 might accelerate the decline toward the $2,860 zone.

Final Thoughts: Is Gold Still a Buy?

• Despite near-term volatility, gold remains supported by long-term macro factors.
• If the Fed signals aggressive rate cuts, gold could resume its uptrend.
• Investors should watch Trump’s next policy moves and US inflation data for further clues.

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