XAU/USD outlook: Gold rises to new record high after Trump's latest decisions shocked markets
Gold opened with gap higher and hit new record high ($4690) on Monday, after President Trump sent a series of shockwaves through the markets over the weekend by threats of imposing extra tariffs on several EU countries, with European leaders started preparations to retaliate that further escalated already heated situation over Greenland.
The western world entered new dimension of existing geopolitical crisis on growing risk of conflict between NATO allies, which adds to growing tensions over Iran, recent US attack on Venezuela and the war in Ukraine that enters fourth year.
Political divisions and clouded economic outlook for the most of developed economies, further clouds overall picture.
The latest developments (which were quite predictable to analysts) sparked fresh migration into safety of precious metals.
The price is establishing above $4600 level, despite weekly close marginally below here ($4596) with next round-figure barrier ($4700) now being under increased pressure (after early Monday’s rally stalled just $10 below this level).
Technical picture on daily chart remains firmly bullish, though with warning from overbought conditions that may pause rally for consolidation.
Near-term action so far holds within a narrow consolidation range above $4650, guarding session low ($4620) and psychological $4600 support, where dips should ideally find firm ground for fresh attempts higher.
Dip below $4600, on the other hand, would open way for deeper pullback and expose next strong supports at $4550 (former tops of Dec 26/29) and $4500 (round figure).
Res: 4700; 4721; 4761; 4800.
Sup: 4650; 4620; 4600; 4562.
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
