Gold Daily | Gold Corrects to $3,122 Amid Trade Tensions and Recession Risks; Eyes on $3,200 Target

【Latest Gold Price and Recent Trends】

Gold prices have recently seen a correction to around $3,122 per ounce, after hitting a historical high of $3,168. Despite this pullback, ongoing global trade tensions and recession risks in the U.S. continue to support gold's upward trend.

【Technical Analysis】

The Relative Strength Index (RSI) suggests that gold remains overbought, indicating that the recent pullback is justified. If the correction intensifies, prices might test the $3,100 level, with potential targets further down at $3,077 and $3,050. Conversely, if buying interest resumes, gold may retest the $3,168 high, potentially advancing towards the $3,200 mark.

【Market Sentiment and Economic Background】

The announcement of new tariffs by U.S. President Trump has increased market volatility, leading to a spike in gold as a safe-haven asset. The dollar's decline has also contributed to gold's strength. The global economic slowdown and trade tensions drive investors toward gold, which has risen 20% this year due to central bank purchases and strong Asian demand. The market awaits crucial U.S. employment data for further direction.

【Analyst Opinions】

Analysts suggest that tariff-induced inflation risks could drive gold prices higher. UBS forecasts could see gold reaching $3,200, with potential to rise to $3,500 if economic conditions worsen. Gold's appeal as a hedge against economic uncertainties remains strong, and investors are advised to maintain a portion of their portfolios in gold for stability.