Gold holds elevated levels amid Dollar stabilization and policy risks

Gold (XAUUSD) is consolidating just below record highs after a strong push toward the $5,250 area. A modest rebound in the U.S. Dollar has slowed momentum in the near term. Even so, the broader macro backdrop continues to favor gold. Trade policy uncertainty and rising geopolitical tensions are pressuring risk sentiment. Expectations for Federal Reserve rate cuts later this year are limiting downside pressure. This combination continues to keep gold supported near the upper end of its range.

Gold consolidates near record highs as Dollar stabilizes and policy risks persist

Gold is consolidating just below recent highs after advancing toward the $5,250 area, following a strong upside move. The pause reflects a modest rebound in the U.S. Dollar as Asian markets reopened with improved liquidity, easing the impact of weekend tariff uncertainty. This Dollar stabilization slowed momentum in the near term. Even so, price remains elevated, suggesting the move is a pause after strength rather than a shift in the broader setup.

Meanwhile, trade policy uncertainty continues to pressure risk sentiment. Mixed signals from Washington have renewed concerns about global growth and policy direction. Wall Street extended its sell-off amid tariff risks, rising geopolitical tensions, and caution ahead of Nvidia’s earnings. This environment favors defensive positioning and keeps gold in focus as a hedge against policy uncertainty.

Markets remain highly sensitive to tariff headlines and geopolitical risks. Reports suggest the administration is considering new national security tariffs after a Supreme Court decision struck down recent levies. Tensions between the United States and Iran remain elevated, adding further uncertainty. At the same time, expectations for multiple Federal Reserve rate cuts this year continue to limit downside pressure. Firm physical demand from India, despite record prices, also helps support gold during consolidation phases.

Gold sustains upside bias while holding above former resistance

The gold chart below shows a well-defined ascending triangle that guided price action through February. Price moved above former horizontal resistance after forming a series of higher lows along the rising trendline. This shift signals acceptance of higher levels following the sharp January decline. The setup favors higher levels over time, despite the risk of short-term consolidation.

Horizontal resistance near the 5,100 area capped price action through multiple tests. Price has moved above this level, indicating acceptance of higher prices. Follow-through strength lifted gold toward the 5,200 zone. This behavior suggests the prior triangle structure is transitioning into a higher price range.

As long as price holds above former resistance near 5,100, the breakout remains intact. The rising trendline now defines key short-term support. A sustained hold above this zone keeps upside pressure in place. A move beneath the trendline would weaken the short-term setup and reopen the lower range.

Gold outlook: Consolidation holds as broader trend stays supportive

Gold is consolidating at elevated levels after a strong advance. Dollar stabilization has slowed momentum, but it has not altered the underlying trend. Trade uncertainty and geopolitical tensions continue to favor defensive positioning. Expected Fed easing later this year is limiting downside pressure. Technically, price remains above former resistance near 5,100, keeping the breakout intact. Short-term pauses remain possible, but the overall framework continues to favor higher levels over time.