Fundamental Analysis:

Gold prices hit a record high after successfully breaking out above the Fibonacci expansion resistance level of 3225.00. The breakout came after a period of consolidation, as market uncertainty prompted a flight to safe-haven assets. While no new concrete developments have emerged from the trade war front, Trump’s imposition of another 145% tariff on Chinese goods continues to add tension. Notably, China has yet to retaliate and is instead seeking broader cooperation in Southeast Asia, indicating a cautious approach. Amid the uncertainty, investors remain inclined to shift portfolios toward gold for protection.

Technical Breakout:  

Gold is trading higher following its breakout above key resistance. MACD indicates diminishing bearish momentum, while RSI stands at 72, remaining above the midline and signaling a continuation of bullish sentiment. If momentum persists, prices may extend gains toward the next resistance at 3295.00. Conversely, a pullback could lead gold to re-test support at 3225.00.

Potential Risks: Ongoing U.S.-China trade tensions could increase volatility in crude oil markets.

Monitoring: Ongoing trade tensions could inject volatility into gold markets.

Resistance levels: 3295.00, 3385.00
Support levels: 3225.00, 3170.00

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