Gold forecast: Where is the yellow metal headed after $4,000?
Gold prices regained the $4,000 level on Friday, closing the price at $4,016 per ounce, as traders responded to a new round of risks after renewed trade tension between the United States and China.
Wind
This rise came after the US President’s threat, Donald Trump, on Friday, imposed new tariffs on Chinese imports, sparking renewed demand for safe-haven assets, and gold rebounding from a session low of $3,944.
On the other hand, traders are increasingly anticipating a 25 basis point interest rate cut by the Federal Reserve in both October and December, pushing yields US Treasury bonds and The dollar fell, making gold less expensive for holders of other currencies.
Purchases by central banks, the continued US government shutdown, and political instability in France also contributed to strengthening the tailwinds for the gold market.
Technical analysis of gold
The technical analysis of the platform indicates "FX Empire"the main trend remains bullish, as Friday’s close kept gold above a pair of minor pivotal support levels at $3,939 and $3,888, and momentum will remain bullish unless the market breaks above $3,819.42, which could prompt a bearish shift in the near term.
With gold trading in an uncharted territory, there are no traditional resistance levels above above. Current record high at $4,059. Therefore, circular psychological numbers, such as $4,100 and $4,200, become the next bullish indicators.
On the downside, the 50-day moving average at $3,592 represents the most reliable trend support at the moment.
Gold Price Forecast: Uptrend Continues
Shows Technical Analysis Gold’s trend will remain bullish as long as the price remains above $3,888. Traders will be watching for a break above $4,059 to confirm a continuation towards $4,100 or more. However, given the speed of recent gains, a short-term pullback towards $3,939.38 or even $3,888 cannot also be ruled out.
If geopolitical tensions escalate or the odds of a lower Interest rates in America more so, gold may see another strong demand, and a short-term decline below $3,819 will be ruled out.
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