Gold – Bulls Strengthen Control Following Brief Consolidation

Gold prices eased on Wednesday after reaching a series of new record highs over the past 24 hours.

The latest bullish surge was driven by growing concerns about the negative impact of the trade war between the US and China, as the world’s two largest economies imposed tariffs on each other.

Investors fear that Trump’s tariffs could trigger a stronger rise in inflation, which may slow down an already fragile economic recovery and increase the risk of a global recession.

So far, today’s decline has been shallow, as the overall sentiment remains strongly bullish, making traders hesitant to engage in significant profit-taking.

However, overbought conditions on the 4-hour, daily, and weekly charts suggest that the price may consolidate before attempting to reach the next targets at $2,886/$2,900 (Fibonacci 138.2% projection / psychological round figure).

Initial support levels at $2,850/$2,840 (broken Fibonacci projection / today’s low) should ideally hold, with a bullish bias remaining intact above the broken bull-channel trendline at $2,823.

The strong demand for safe-haven assets is likely to persist under current conditions, reinforcing a bullish near-term outlook.

Res: 2886; 2900; 2946; 2983
Sup: 2860; 2850; 2840; 2823