Gold Daily | Gold Rebounds to $2,901 Amid Safe-Haven Demand, Breaks Bearish Trendline on Trade Concerns

【Latest Gold Price and Recent Trends】

Gold prices have rebounded, currently trading around $2,901 per ounce, up 0.7%. This rise follows a previous dip and is driven by safe-haven flows amidst trade war concerns that have dampened overall market risk appetite. The drop in the U.S. dollar index and 10-year Treasury yields has also made gold more attractive to overseas buyers.

【Technical Analysis】

Gold is trading between the support of $2,892 and resistance at $2,930. The bearish momentum defined by a small descending trendline has been broken, providing buyers with confidence. However, sellers will look for a break below the support line to regain control. On the daily chart, gold remains below the 21-day moving average, and further challenges are seen at $2,909 and $2,930. If sellers persist, support is anticipated at $2,850.

【Market Sentiment and Economic Background】

Investors are keenly awaiting U.S. economic data, particularly the CPI report, which could cause significant market movements. High data could lead to a strong sell-off in gold, while weak data may support further gains. The U.S. trade policy fluctuations, coupled with weak economic data and rising inflation expectations, are causing market unease. The anticipation of a potential recession is also affecting sentiment, with concerns that the Federal Reserve may not lower rates quickly enough due to inflation constraints.

【Analyst Opinions】

Analysts expect continued focus on policy changes, especially tariffs' impact on U.S. growth and inflation expectations. This could influence real rates and motivate global central banks to buy more gold. Concerns about economic slowdown are reflected in recent gold sell-offs, but safe-haven buying could reemerge, especially if negotiations at the U.S.-Ukraine summit fail to ease geopolitical tensions. Analysts predict gold could challenge historical highs if current economic and trade tensions persist.