Over the past 24 to 48 hours, gold (XAUUSD) prices have continued to surge, hitting record highs. Yesterday’s closing price stood at $4,460.26 per ounce, near recent peaks, showing strong performance and significant volatility. Investors have focused on two key drivers: escalating global geopolitical tensions, which boost safe-haven demand, and shifting expectations around Federal Reserve policies, particularly bets on rate cuts that have pushed gold prices beyond previous ceilings.

Specifically, the rising geopolitical conflicts and increased uncertainty have heightened demand for gold as a traditional safe asset. Investors seek refuge in gold amid these uneasy times, driving prices higher. Meanwhile, the Federal Reserve’s recent signal toward potential pauses in rate hikes or possible cuts have lowered real interest rates, further supporting gold’s value and propelling it to record highs. Together, these factors have been the primary engines behind the strong upward momentum in the gold market.

For the average investor, this period in the gold market acts like a safe harbor. When global economic and political uncertainties intensify, gold offers an opportunity for asset preservation. Holding gold during such volatile times presents a strategic way to manage risks and safeguard wealth.

Daily Chart

The daily chart reveals a clear uptrend for XAUUSD, with prices steadily climbing from around $4,100 earlier this month. After breaking the critical resistance at $4,381.44 mid-December, the rally accelerated sharply. Price remains above both the 20-day and 50-day moving averages, while the Bollinger Bands are widening upward, indicating increased volatility and bullish momentum. The MACD indicator is in positive territory with expanding bullish divergence, confirming a strong upward trend. Overall, technical patterns support sustained upside potential with limited short-term pullback risks.

1H Chart

The hourly chart, reflecting the last 3 to 5 days, demonstrates strong bullish momentum as prices consistently make higher highs. The 20-hour moving average is trending upward, accompanied by an expanding Bollinger Band following the breakout. The MACD shows a bullish crossover, signaling increasing momentum. The recent formation of a flag pattern suggests a brief consolidation phase before another upward move. Short term buying pressure remains firm, presenting high-probability trading opportunities around key support levels and volume confirmations.

Technical Trend:  XAUUSD is currently in a decisively bullish trend with price well above major moving averages and a strong momentum backdrop supporting further gains.

The most critical technical insight is the strong price breakout above the key resistance level of $4,381.44, followed by rapid gains reaching $4,460. Expansion of Bollinger Bands combined with a bullish MACD confirms robust momentum. The flag pattern on the hourly chart points to likely continuation of the uptrend after a brief pause. The recent bullish engulfing candlestick pattern signals continued buyer dominance for the next 24 hours. Overall, market sentiment remains positive, and traders should focus on breakout and pullback entry points.

Today’s global economic calendar shows no significant or direct events likely to immediately impact XAUUSD. However, key US releases at 14:30 GMT+1 include third-quarter GDP and core PCE inflation estimates. Better-than-expected US data could strengthen the dollar, putting some short-term pressure on gold prices. Conversely, weaker data would likely support further gains in gold. Traders should watch these announcements closely, though no critical event is scheduled to cause immediate market shifts for gold today.

Resistance & Support

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