"Gold Drops! What’s Coming Next?"
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Discover whether it's better to open buy or sell positions on various assets. Here's a quick snapshot of today's gold prices:
Gold (XAUUSD) Pulls Back Despite Ongoing Tariff Turmoil
Gold came under pressure late last week, retreating from a new all-time high near 3,170 recorded on Thursday. This pullback was driven by profit-taking, even though the US dollar remained weak and risk aversion dominated global markets following President Donald Trump's announcement of higher-than-expected tariffs on Wednesday.
The decline may have been triggered by the exclusion of gold and other key metals from the tit-for-tat tariffs, prompting some investors to offload the metal after previously stockpiling it in anticipation of the announcement.
🔍 Technical Outlook:
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The 20- and 50-day exponential moving averages support the current uptrend.
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However, momentum indicators suggest that a corrective wave might persist in the short term.
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The RSI has sharply dropped toward its neutral 50 level.
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The stochastic oscillator has also declined rapidly, forming a bearish crossover in the overbought zone — indicating waning bullish momentum.
Despite this, gold started the new week on a positive note. If buying appetite returns and price rebounds from the support zone connecting the 50-day EMA and the late-February peak near 2,950, it could push beyond the 3,170 high toward the 3,260 level.
On the flip side, if selling pressure intensifies and gold breaks below this key support, it may quickly fall toward the next demand zone at 2,886–2,870.
📈 In Summary:
Gold still holds strong medium-term potential as it remains a key safe haven amid escalating trade wars and persistent uncertainty. A clear rebound from the support area could propel the price to fresh record highs in the coming sessions.
Mohamed El Sherbiny – Senior Analyst & Lead Instructor – XM Live Broadcast Room
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