Is gold heading for an all-time high? With unprecedented market shifts and technical indicators screaming ‘buy,’ the precious metal’s bullish run is gaining serious momentum. Find out why the $3400 resistance is just the beginning and what’s truly driving this surge. Will it reach $3500?
Gold prices are currently exhibiting a strong bullish momentum, captivating global investors as the precious metal approaches significant resistance levels, signaling potential for further upward movement. This surge reflects a complex interplay of market forces, technical indicators, and evolving geopolitical landscapes that collectively bolster the appeal of safe-haven assets.
Key technical indicators are strongly affirming this positive outlook, with the 14-day Relative Strength Index (RSI) positioned comfortably around 58. This level suggests that gold has considerable room for additional gains before entering overbought territory, thereby supporting the current bullish sentiment. Concurrently, the Moving Average Convergence Divergence (MACD) indicator’s lines are showing a robust upward trend, further reinforcing the probability of sustained price appreciation in the near term.
A critical juncture for gold’s trajectory is the psychological $3400 per ounce resistance level, which the metal is poised to breach. This anticipated breakthrough is largely fueled by heightened market tensions, particularly stemming from unprecedented interventions by the US President in the policies of the Federal Reserve. Such political interference threatens the central bank’s cherished independence, a cornerstone that has historically lent considerable weight and stability to the US dollar in global markets.
The President’s recent criticisms and pressure on Fed Governor Jerome Powell, along with accusations leveled against other Federal Reserve officials, have demonstrably weakened investor confidence in the US dollar. This erosion of trust has redirected capital flows, making gold an increasingly attractive alternative. Consequently, dedicated gold bulls have capitalized on this shift, successfully pushing the price towards the $3399 per ounce resistance, marking its highest level in two weeks and setting the stage for further advances.
Should gold successfully overcome the pivotal $3400 resistance, analysts forecast a reinforcement of the bullish trend, paving the way for even stronger upward breakouts. The possibility of reaching the unprecedented $3500 resistance, an all-time high for gold, remains viable if the prevailing drivers persist. These include escalating global trade disputes and geopolitical tensions, a continued increase in central bank gold bullion purchases, and sustained pressure on the US dollar, all contributing to a favorable environment for the precious metal.
For traders seeking optimal entry points, the prevailing advice suggests waiting for price declines to re-enter the market, rather than pursuing purchases at current highs. This strategy aligns with the broader principle of buying gold bullion on every dip, capitalizing on its intrinsic value as a store of wealth. A significant reversal in the upward trend on the daily chart would only occur if market confidence is substantially restored, perhaps through an end to political interventions in Fed policies or a resolution of ongoing global trade disputes.
In such a scenario, gold’s price would likely retreat to its established support levels, specifically around $3355 and $3330 per ounce, offering strategic buying opportunities. However, as long as the current drivers of market uncertainty and dollar weakness persist, the bullish scenario for gold remains the most compelling, positioning it as a key asset in diverse investment portfolios.
