Gold ended the week with strong momentum, gaining 2.3% and closing at $3,327 per ounce. While prices briefly touched an all-time high of $3,357 on Thursday, the precious metal eased slightly by Friday, reflecting a round of profit-taking by investors.
The rally was largely fueled by escalating geopolitical tensions and dovish policy signals from major central banks. Heightened concerns over the US-China trade dispute, combined with ongoing interest rate debates in the U.S. and Europe, pushed investors toward gold, a traditional safe-haven asset.
The XAU/USD daily chart remains bullish. The pair recorded a higher high and higher low during the week, staying firmly above its 20-day Simple Moving Average (SMA), now at $3,114.60. Technical indicators have slightly moderated but continue to indicate overbought conditions, suggesting room for further volatility.
Key Technical Levels and Market Behavior
Support and resistance markers offer insight into near-term price movements. The current support levels include:
- $3,317.20 – Closest near-term floor
- $3,305.65 – Secondary retracement level
- $3,292.80 – Stronger long-term support
On the resistance side, gold faces upward barriers at:
- $3,335.00 – First breakout point
- $3,350.00 – Psychological threshold
- $3,375.00 – Extension of record highs
Despite a temporary dip to $3,284.10 on Thursday, XAU/USD quickly rebounded above the $3,300 line, reflecting resilient market confidence. The U.S. Dollar remained broadly weaker throughout the week, enhancing the appeal of gold for holders of other currencies.
Central Banks, Politics Drive Investor Sentiment
Thursday’s session was marked by pivotal policy and political developments:
- ECB Rate Cuts: The European Central Bank lowered all three key interest rates by 25 basis points. However, officials provided limited guidance on future policy, citing persistent trade-related risks.
- Trump vs. Powell: U.S. President Donald Trump criticized Federal Reserve Chairman Jerome Powell for hesitating on rate cuts, further clouding investor sentiment. Powell, in a prior speech, warned of long-term risks from the administration’s trade policies.
- NAFTA 2.0 Talks: The White House expressed optimism over fresh discussions with Mexico and Canada on trade reform, though no specifics were disclosed.
Meanwhile, Wall Street showed a mixed response: the Dow Jones dipped, while the Nasdaq and S&P 500 managed marginal gains.
As gold continues to hover near historic highs, all eyes are on geopolitical shifts and central bank signals that could shape the next breakout—or correction.