- Gold price analysis shows strong bullish momentum as geopolitics and a subdued dollar support the uptrend.
- Markets are eager to watch the US inflation reports for further impetus.
- Technically, the $4,600 level remains the key resistance for the buyers.
Gold remains in high demand, trading just below the $4,600 mark, close to the new record highs set earlier on Monday. The overall trend stays positive, thanks to a big rise in global uncertainty and renewed flows for safety. Markets are reacting to several geopolitical risks, keeping investors cautious.
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Tensions remain high after the US operation in Venezuela, and President Trump threatened to do more in response to unrest in Iran. The war between Russia and Ukraine has also turned worse, with recent drone and missile attacks near NATO borders.
Meanwhile, China has shown its disagreement with Japan by limiting rare-earth exports, which raises concerns about global supply chains. All of these developments have made investors less willing to take risks, making gold a better hedge.
The US dollar remains subdued, favoring bullion. Reports of a criminal investigation involving Federal Reserve Chair Jerome Powell shook investors’ confidence and raised further questions about the central bank’s independence. The uncertainty has led to more flows into non-yielding assets like gold, even though markets do not expect aggressive rate cuts later in 2026.
The US job numbers released last Friday sent out mixed signals. In December, nonfarm payrolls went up by 50k, well below the forecast. However, the unemployment rate dropped to 4.4%. The data dampened hopes of a quick Fed easing, but it didn’t bring back the dollar’s long-term strength.
The focus now shifts to US inflation data, due later this week, specifically the CPI and PPI. Markets anticipate that inflation will stay low, which would leave the door open for rate cuts later this year. If inflation stays high, gold could break through the $4,600 barrier.
Gold Price Technical Analysis: Strong Bulls Above Key MAs
Gold remains in a strong bullish pattern on the 4-hour chart. The metal is trading near $4,580 after breaking through the previous resistance zone around $4,520. The price stays well above the 20, 50, and 100-period MAs, confirming that the trend will continue. The 200-period MA, near $4,310, is an important support for the medium term.
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RSI is high, around 75, revealing overbought conditions in the short term. The $4,600 psychological level acts as an immediate resistance. If the price stays above this zone, it could continue the upside momentum. On the other hand, declining to $4,520 or $4,480 could attract more buyers than to signal a change in the trend.
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