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Gold remains above $3,025 with a positive bias but lacks strong bullish conviction. Safe-haven demand is supported by concerns over US President Donald Trump’s upcoming reciprocal tariff announcement on April 2, as well as extra tariffs on Venezuela and potential retaliatory measures against key trading partners, adding to market uncertainty, and the Federal Reserve’s (Fed) outlook for two rate cuts by the end of the year.
However, gains are limited by renewed US Dollar strength and an overall positive risk sentiment in financial markets. Gold prices are also influenced by weak US consumer confidence, signaling recession risks. Meanwhile, China’s economic stimulus boosts risk sentiment, supporting equities and limiting gold’s upside potential.
From the technical analysis standpoint the price has continued its bullish momentum and found sufficient resistance on the upper band of the Bollinger bands slightly pushing it down and currently trading just above $3,000. The moving averages are confirming the bullish momentum in the market while the Stochastic oscillator has declined just below its extreme overbought levels.
The Bollinger bands are still somewhat expanded showing that volatility is still there and has the potential to push even higher. In the case of a bearish correction in the market, which has no real evidence or signs of happening any time soon, the first area of technical support might be found around $2,950 which is the 161.8% of the Fibonacci extension level as well as the area of price reaction in late February.
This article was submitted by Antreas Themistokleous, an analyst at ExnessExness.
The opinions in this article are personal to the writer. They do not reflect those of Exness or FX Empire.
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