empty
02.04.2025 01:22 PM
XAU/USD. Analysis and Forecast

This image is no longer relevant

Gold continues to rise as investors remain concerned about U.S. President Donald Trump's aggressive trade policy and its impact on the global economy. In addition, ongoing geopolitical tensions serve as a key tailwind for the safe-haven asset. However, gold bulls should proceed with caution ahead of key tariff-related announcements.

Recent macroeconomic data from the U.S. has sparked concerns about potential stagflation. The drop in the Manufacturing PMI to 49 points to a contraction in business activity—an alarming signal for the economy. Meanwhile, expectations of interest rate cuts by the Federal Reserve are also supporting gold demand, making the metal more attractive.

From a technical standpoint, yesterday's pullback from the all-time high stalled near the $3100 area, which is now acting as support. However, with the RSI (Relative Strength Index) residing in overbought territory, a short-term consolidation or modest retracement may be expected before positioning for further upside.

A break below the $3100 level would open the door toward the weekly low around $3076, followed by a potential move to the breakout point at $3057. The downward trajectory could extend further to $3035 support, with the psychologically important $3000 level serving as a major barrier. A drop below this key level could give bears the upper hand.

Nonetheless, the path of least resistance for the precious metal remains upward, with some consolidation likely, as long as daily chart oscillators continue to hold firmly in positive territory.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Irina Yanina
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

EUR/USD. The Hottest Week of July: FOMC Meeting, Core PCE Index, Eurozone Inflation, US GDP, and Nonfarm Payrolls

The upcoming week promises to be volatile. The economic calendar is packed with key fundamental events — including Nonfarm Payrolls, the FOMC meeting, eurozone inflation data, the ISM Manufacturing Index

Irina Manzenko 00:48 2025-07-28 UTC+2

GBP/USD Overview. Weekly Preview. Fed Meeting and Key Labor Market Data

The GBP/USD currency pair declined significantly at the end of last week. This sharp drop in the British pound raises some confusion, as there were no solid reasons for such

Paolo Greco 00:48 2025-07-28 UTC+2

EUR/USD Overview. Weekly Preview. Will the Euro Follow the Pound's Decline?

The EUR/USD currency pair maintains a bullish bias on the 4-hour timeframe. While the British pound has shown a notable decline in recent days, the euro

Paolo Greco 00:48 2025-07-28 UTC+2

Euro Currency – Weekly Preview

There will be few news events in Europe. However, they are not particularly necessary. The U.S. will have a very intense and diverse news cycle. As a result, market participants

Chin Zhao 00:48 2025-07-28 UTC+2

British Pound – Weekly Preview

For the pound, the new week promises to be very uneventful. No important data is expected from the United Kingdom, so all attention will shift to the dollar

Chin Zhao 00:48 2025-07-28 UTC+2

US Dollar – Weekly Preview

Here we are, finally turning to the dollar and the United States. Let's begin with the most important events. First and foremost — the Federal Reserve meeting. Although

Chin Zhao 00:47 2025-07-28 UTC+2

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is attempting to attract buyers. Despite the European Central Bank's decision on Thursday to leave interest rates unchanged, the euro is facing headwinds due to ongoing

Irina Yanina 13:20 2025-07-25 UTC+2

No Unity of Opinion Within the ECB Yet

Yesterday, the European Central Bank kept interest rates unchanged, citing risks stemming from the trade war with the U.S., the strong euro, and rising government spending. According to Governing Council

Jakub Novak 11:59 2025-07-25 UTC+2

ECB Leaves Rates Unchanged

Yesterday, many were watching how the European Central Bank would act under current conditions, as the economy still requires stimulus, but inflationary risks prevent further easing. Following the meeting, President

Jakub Novak 11:36 2025-07-25 UTC+2

The Market Has Chosen a Win-Win Strategy

The U.S. stock market has shaken off its fears completely. The VIX volatility index has plunged to its lowest level since early February, while the S&P

Marek Petkovich 11:15 2025-07-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.