Gold prices (XAU/USD) continue to draw attention as they approach two-week highs, trading near $3,380 per ounce. The recent surge is fueled by heightened demand for safe-haven assets in response to intensifying global trade tensions, particularly after an unexpected increase in tariffs on Indian imports. These developments have increased market uncertainty, bolstering gold’s appeal for investors seeking stability.

From a technical perspective, gold is consolidating within a triangle pattern, with boundaries currently observed between $3,355 and $3,385. Price action remains above the crucial $3,365 support level, and gold is trading above the 65-day exponential moving average, indicating that bullish momentum may persist in the medium term. This pattern often signals a looming breakout, potentially to the upside, especially if prices manage to hold above key support levels.

Macroeconomic factors also support gold’s strength. Persistently weak US economic data and signs of a softening labor market strengthen expectations for a Federal Reserve rate cut. Market consensus for a 25-basis-point reduction in September is strong, and an additional cut is widely anticipated before year-end. Because gold typically benefits from periods of monetary easing and low interest rates, these developments provide a supportive backdrop for further price appreciation.

However, market sentiment data shows that a significant majority of traders remain net-long on gold, a dynamic that can occasionally precede short-term price corrections as contrarian perspectives take hold. Immediate resistance can be found at $3,322, $3,341, and $3,350. A decisive daily close above the $3,300 handle would be needed to confirm renewed bullish momentum, while a sustained break beneath moving averages may signal further downside risk.

Overall, gold’s technical and fundamental outlook remains constructive, but traders should monitor upcoming economic releases and shifting Fed policy expectations, as these could spark volatility and shape the next leg of price movement.