Gold Daily | Spot Gold Rises 2.7% as Market Eyes $3,400 Resistance Amid Economic and Geopolitical Factors

【Latest Gold Price and Recent Trends】

The gold market currently maintains the $3,300 support level, despite recent global economic sentiment shifts. Spot gold closed the week at $3,325 per ounce, marking a 2.70% rise from the previous week. Recent market corrections saw gold recover previous losses from $3,200 support. Analysts indicate a cautious outlook due to economic stability in the U.S. and inflation risks.

【Technical Analysis】

The daily chart shows a sharp pullback after facing resistance at $3,400, briefly dropping below the 21-day SMA at $3,306. The 14-day RSI suggests potential bullish rebound possibilities. Gold needs to reclaim the $3,400 level and maintain above two-week highs at $3,440 to target the historical high of $3,500. On the downside, a close below $3,306 (21-day SMA) could trigger further declines towards $3,129 (50-day SMA), navigating through static support at $3,260 and the May 2 low of $3,223.

【Market Sentiment and Economic Background】

Gold's recent neutral trend aligns with the Federal Reserve's stance on holding interest rates stable, despite inflation concerns. Market expectations for a rate cut in summer remain, but optimism is waning. Additionally, upcoming U.S. economic data, including CPI, PPI, and retail sales, could influence gold's trajectory. The geopolitical backdrop includes ongoing U.S.-China trade talks and tensions in regions like India-Pakistan, potentially impacting safe-haven demand for gold.

【Analyst Opinions】

Analysts suggest gold faces downside risks but anticipate buying opportunities on pullbacks. Short-term resistance is seen, yet geopolitical tensions could support long-term bullish trends, with potential for prices to break $3,500 amidst persistent political uncertainties. Investors are attentive to trade negotiations and the Federal Reserve's policy signals, which may influence gold's appeal as a defensive asset.