Gold – Resurgence in safe-haven demand drives gold price higher

Gold extended its strong recovery into a second consecutive day, reaching a two-week high on Tuesday. The price broke through the 61.8% Fibonacci retracement of the \$3,500–\$3,201 pullback (\$3,286) and neared the psychological \$3,400 level.

A fresh surge in safe-haven demand, driven by renewed concerns over the trade conflict with China and a deteriorating geopolitical landscape, pushed gold prices higher. This suggests that the pullback from the recent record high was a healthy correction, likely nearing its end.

These developments reinforce the notion that the broader uptrend remains intact, with ongoing economic and geopolitical uncertainties continuing to drive investors toward safe-haven assets, implying that gold could surpass its current peak.

Markets are also closely watching the Fed’s policy decision on Wednesday, with widespread expectations for no change in rates at the May meeting. Investors are awaiting clues about the Fed’s rate trajectory, particularly from Fed Chairman Powell’s press conference.

The daily chart shows a firmly bullish technical outlook, with a close above \$3,351 (50% retracement) seen as the minimum requirement to confirm a positive signal and further strengthen the near-term structure.

A break above \$3,386 and \$3,400 (61.8% Fibonacci and psychological resistance) could pave the way for a renewed push toward the key \$3,500 barrier.

Res: 3387; 3400; 3430; 3450
Sup: 3351; 3315; 3300; 3272