Gold maintains uptrend despite strong equities and geopolitical relief
|Gold (XAU/USD) remains above the $5,000 mark, even as stronger risk sentiment caps near-term upside. Equity gains and easing geopolitical tensions have softened safe-haven demand. Still, ongoing central bank buying and mixed economic signals are providing underlying support, keeping the broader bullish structure intact. As long as price holds above key support zones, the bias continues to favor further gains.
Gold holds ground despite risk-on flows and equity market gains
Gold is consolidating just above the $5,000 level as improving risk sentiment caps further upside. U.S. equities extended their gains on Monday, led by technology stocks, pushing the S&P 500 and Dow Jones to fresh highs. Easing geopolitical tensions and diplomatic progress between the U.S. and Iran have supported a risk-on tone, reducing near-term demand for gold.
Meanwhile, diplomatic progress has started to ease tensions in the Middle East. Recent talks between Washington and Tehran have reduced geopolitical concerns. Iran’s President Masoud Pezeshkian described the discussions as “a step forward,” even as he pushed back against external pressure. As risk aversion fades, capital is shifting back into equities, temporarily capping gold’s upside momentum.
At the same time, economic signals remain mixed, keeping markets cautious ahead of key data releases. U.S. labor figures, including the delayed January jobs report, remain a critical factor for shaping rate expectations. Any signs of economic softness could revive demand for gold. Meanwhile, central bank activity continues to support long-term fundamentals. The People’s Bank of China added gold for a 15th consecutive month, signaling sustained structural demand from sovereign institutions.
Gold maintains bullish structure after holding $4,600 support
The gold chart below shows a strong reversal after price broke down toward the highlighted support zone. The swift recovery from the $4,600 level signaled firm demand near key trend support. Price has since climbed back above $5,000, indicating continued buying interest on pullbacks.
Gold remains in a steady uptrend, supported by a rising trendline that has held firm since late December. This support zone has repeatedly provided a base during pullbacks, maintaining structural integrity. Despite last week’s sharp decline, the price never confirmed a breakdown below this key area. The quick recovery points to continued strength in the underlying trend.
Price is now consolidating just above the $5,000 level, but still below recent highs. Short-term resistance may cap upside until fresh economic data provides clarity. However, the technical setup remains constructive as long as gold stays above the $4,600–$4,700 zone. A close below this range would weaken the bullish structure and shift focus toward lower support levels.
Gold outlook: Macro and technical tailwinds support continued strength
Gold continues to hold firm near the $5,000 level, supported by steady technical structure and long-term macro demand. Rising equity markets and easing geopolitical tensions have reduced near-term demand, yet strong central bank buying and U.S. political uncertainty provide a firm backdrop. The quick rebound from key support near $4,600 highlights underlying strength in the trend. As markets await upcoming U.S. data, gold remains technically constructive above this base.
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