Gold bull run fueled by technical breakout and global uncertainty
|Gold has once again become the centerpiece of global financial attention. With rising geopolitical tensions and economic uncertainty, investors are rushing towards the age-old haven. The recent surge in gold prices reflects both technical momentum and a strong macroeconomic backdrop. The price chart shows a strong upward trend that has taken years to form.
Geopolitical turmoil drives Gold demand
Gold remains in demand as a safe-haven asset. Investors react to the ongoing Russia-Ukraine war and tensions in the Middle East. These conflicts increase global uncertainty and push buyers towards gold. The metal holds its ground above $3,250, showing resilience amid rising geopolitical risks.
US political developments add to the uncertainty. President Donald Trump's new 100% tariffs on foreign movies have shocked markets. This unpredictable trade policy weakens investor confidence. As a result, gold benefits from safe-haven inflows while the US Dollar struggles to gain ground despite a strong jobs report.
Economic uncertainty also supports gold’s rise. Traders expect the Federal Reserve to begin cutting rates soon. This reduces the appeal of interest-bearing assets and boosts non-yielding gold. However, many investors remain cautious. They avoid large positions and wait for clearer policy signals.
Technical breakout confirms Gold’s bullish momentum
The monthly chart for gold shows that the breakout above the neckline was the trigger. The pattern projected a target by measuring the depth from the neckline to the bottom of the head and projecting that upward. This gave an approximate target around the $3,200-$3,300 range, which has now been achieved.
The continuation of higher highs and higher lows confirms the strength of the uptrend. Each candle since the breakout has closed significantly above previous resistance levels, now acting as support.
The absence of major correction candles also highlights sustained buying interest. The breakout was followed by tight consolidation near $2,200–$2,400, which later led to an accelerated move to $3,200. This bullish price action indicates institutional involvement and a strong demand for gold amid global uncertainty.
Moreover, the formation is not just technically powerful but also psychologically relevant. A breakout after such a long consolidation phase tends to attract new long-term investors and speculators alike.
Outlook: Gold strength maintained amid uncertainty
Gold holds modest gains amid limited follow-through, supported by ongoing geopolitical tensions and uncertainty over US tariff policy. While Fed rate cut bets and a muted USD boost gold, investor caution keeps momentum in check. Escalating conflicts in Eastern Europe and the Middle East continue to drive safe-haven demand. However, upbeat US jobs data limits the metal’s upside as markets remain on edge.
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