Despite recent losses from risk-off sentiment unwinding, gold has rebounded strongly after testing and bouncing off the long-term bullish trendline. Today, gold prices have surged by 1%, reaching around $3,336 per ounce. This rise is fueled by the dollar’s retreat, driven by concerns over the expanding U.S. government deficit and the progress of a massive tax-cutting and spending bill in the Senate.
“Adding to gold’s safe-haven appeal is the uncertainty surrounding trade deals with major countries, including President Trump’s fresh tariff threats on Japan. With the Federal Reserve expected to cut interest rates later this year, gold is set to attract even more attention in the coming weeks,” shared Vijay Valecha, Chief Investment Officer from Century Financial.
Vijay further added that investors are eagerly awaiting key U.S. labor market reports this week, including Thursday’s non-farm payrolls data, which could provide more clues on the Fed’s policy path.
“Today’s release of several important data points, such as the S&P Global Manufacturing PMI and ISM Manufacturing PMI, will also be closely watched,” he noted.
On the 4-hour chart, gold has broken above the descending channel resistance, setting its sights on the Bollinger Band’s upper boundary at $3,350, which aligns with the 100-day SMA level. A successful break above this level could provide the momentum needed for gold to test the $3,377 mark, a previous support turned resistance from mid-May. On the downside, immediate support is seen at the psychological level of $3,300, followed by $3,275, which served as a support level during Friday’s and Monday’s sessions.
Gold prices in the UAE are as follows –
24 Carat – AED 400.25
22 Carat – AED 370.75
21 Carat – AED 355.50
18 Carat – AED 304.75
