GOLD recovers to trade around $2,900, still has a lot of support

XAUUSD has stabilized and recovered after falling more than $20 yesterday and is now trading around $2,900. Earlier, investor concerns about a US economic slowdown caused a broad decline in stocks and commodities, dragging down precious metals, especially gold.

held above $2,880 after falling nearly 1% on Monday. US President Donald Trump said over the weekend that the US economy could get worse before it gets better and that he was adjusting trade policy through tariffs, fueling market concerns about a possible economic recession.
When broader financial markets take a hit, investors may sell gold to cover losses in other assets, causing the price of gold to fall in the short term. Gold prices have rallied 10% so far this year, hitting a new high. The rally has been fueled by uncertainty surrounding the Trump administration’s policies, central bank purchases of gold, and expectations that the Federal Reserve could cut interest rates further. Lower borrowing costs typically benefit non-yielding assets like gold.

While rising gold prices have dented physical demand in some major Asian economies, inflows into gold ETFs have remained steady. Holdings of gold ETFs hit their highest level since December 2023 as of last week, according to data compiled by Bloomberg.

Investors had begun to reduce their exposure to gold ahead of Monday’s sharp market sell-off. Hedge funds’ long gold positions fell to their lowest in nine weeks, according to the latest data from the U.S. Commodity Futures Trading Commission (CFTC).

While this correction appears to be broad-based, the underlying forces will still be a solid support for gold's upside potential, from the geopolitical landscape to Trump's policies creating global trade conflicts to expectations of Fed rate cuts. Overall, gold still has a lot of support.

Markets focus on US inflation data and Fed policy expectations
Investors are now focused on upcoming US inflation data to gauge whether the Federal Reserve will cut interest rates further:
US Consumer Price Index (CPI) – due on Wednesday
US Producer Price Index (PPI) – due on Thursday
Traders are now fully pricing in the possibility of a Federal Reserve rate cut in June. Federal Reserve Chairman Jerome Powell said on Friday that it is not yet known whether the Trump administration’s tariff policies will lead to higher inflation.

In general, lower interest rates increase the appeal of gold because it is a non-interest-bearing asset, making it cheaper to hold than other assets.

GOLD falls slightly as Dollar recovers, news, main trends

XAUUSD Technical Outlook Analysis
On the daily chart, after gold fell to the support level noted by readers in the previous issue at 2,880 USD, it received support to recover, currently trading around 2,900 USD.

A break above the 2,900 USD price level would be considered a positive signal with the next target being the EMA21 area, followed by 2,929 USD rather than 2,942 USD.

In the short term, gold has not yet shown a specific trend when entering the accumulation phase, which is described by 2 green trend lines. But in the medium and long term, the possibility of price increase is still very good when in terms of momentum, the Relative Strength Index RSI is still above 50.

During the day, gold is in the accumulation phase with the main trend leaning towards price increase, the notable positions will be listed as follows.
Support: 2,880 - 2,868 USD
Resistance: 2,900 - 2,929 - 2,942 USD

SELL XAUUSD PRICE 2908 - 2906⚡️
↠↠ Stoploss 2912

→Take Profit 1 2900
↨
→Take Profit 2 2894

BUY XAUUSD PRICE 2857 - 2859⚡️
↠↠ Stoploss 2853

→Take Profit 1 2865
↨
→Take Profit 2 2871

Note

Gold recovers positively towards 2,902 USD/oz

Trade closed: stop reached

Note

⚫Gold prices rose due to a weaker US dollar and increased demand for safe-haven assets, as concerns about a US recession grew more evident.

Note

⚫The US increased tariffs on imported steel and aluminum by 25-50%, strongly affecting Canada, Mexico and the global supply chain, increasing demand for safe haven gold.

Note

GOLD recovers and stays above $2,900, pay attention to CPI data

Note

Gold price drops to $2,912/oz

Note

▫️Gold SPOT hit $2940 per ounce or more, up 0.23% on the day.

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