Gold Soars Past $3500

Gold surged dramatically since Monday’s opening at $3333, reaching $3500 by Tuesday morning, marking a 5% increase in just over 24 hours.

The rally that began at the start of the year shows no signs of slowing down, with gold climbing around 33% since January 1. This surge is driven by ongoing economic uncertainties that are fueling demand for the safe-haven metal.

Many analysts had previously set $3500 as a target for the year, a view I shared, believing that the initial euphoria surrounding Trump’s drastic measures would begin to fade, especially with the anticipated peace talks in Ukraine.

However, fresh waves of trade tariff news, particularly the escalating tensions between the US and China, as well as Trump’s attempt to remove the head of the US Federal Reserve, have significantly shaken investor confidence in the US economy. This has led to an even stronger migration into gold, and the trend shows no signs of slowing.

The brief touch of $3500 was followed by a sharp pullback, driven not only by the psychological significance of this level but also by overbought daily indicators, suggesting that the bulls may pause for consolidation before another attempt at breaking through the $3500 barrier.

Initial support is now seen around Monday’s high ($3430) and today’s low ($3412), along with the key psychological level of $3400. A pullback to these levels would ideally maintain the bullish momentum, but a break below $3400 would signal a deeper correction, with potential support levels at $3350, $3330, and $3300.

Res: 3466; 3500; 3521; 3535
Sup: 3430; 3412; 3400; 3450