Gold extends its gains amid uncertainties surrounding US trade policies and a weaker dollar

Gold prices surged to a fresh multi-week high early Wednesday, building on Tuesday’s strong 1.4% rally. The precious metal remains supported by robust safe-haven demand amid renewed uncertainties over President Trump’s trade policies, a weaker dollar, and widespread expectations that the Federal Reserve will maintain interest rates at next week’s policy meeting.

The bullish momentum above the $2700 level continues into its third consecutive day, with Tuesday’s close above key barriers at $2721/26 (previous double top) and $2730 (76.4% Fibonacci retracement of the $2790/$2536 decline) delivering a strong upside signal.

Gold bulls are targeting the all-time high of $2790, set in October 2024, and the psychological $2800 threshold. However, a period of consolidation is likely before attempting these levels.

Overbought conditions on the daily chart and a downturn in 14-day momentum indicate that the bullish advance is encountering resistance.

Any pullbacks should ideally find support in the $2730/20 region (former critical resistance levels), allowing for a healthy correction and providing an opportunity to rejoin the uptrend. The broader bullish outlook remains intact as long as deeper dips hold above the $2700 zone.

Res: 2762; 2774; 2790; 2800
Sup: 2741; 2730; 2721; 2700