Over the past 24 to 48 hours, gold (XAUUSD) has maintained strong momentum, closing yesterday near $5179, slightly lower than the previous close of $5185.17. Gold’s sustained position above the $5,000 mark highlights ongoing market concerns over inflationary pressures and geopolitical risks.

Recent market news highlights that gold’s strength is largely driven by increased safe-haven demand ahead of the US Producer Price Index (PPI) data release. Concurrently, US-Iran talks in Geneva have helped stabilize expectations, keeping gold prices trading in a narrow band just below $5,200. Additionally, Bank of America projects that gold could break above the unprecedented $6,000 level within the next 12 months, offering an optimistic outlook for investors.

For the average investor, gold’s performance during this period reflects multiple layers of global economic and geopolitical uncertainty. Whether it is tariff disputes, slowing economic growth, or international negotiations, these factors have prompted investors to funnel capital into gold as a traditional safe-haven to mitigate potential risks. Hence, despite some short-term price fluctuations, gold remains a solid option to hedge against market volatility and preserve value.

Daily Chart

The daily chart shows a steady uptrend for XAUUSD since mid-February, characterized by a hammer candlestick pattern signaling bullish control. Moving averages show a clear bullish alignment, with prices holding near the upper Bollinger Band, indicating sustained upward momentum. The MACD histogram remains strongly positive and expanding, confirming the dominant uptrend. Overall, the daily technical setup suggests XAUUSD is well-positioned to push beyond the $5,200 resistance zone.

1H Chart

On the hourly chart, XAUUSD has been drifting upward over the last 3-5 days with intermittent pullbacks followed by renewed buying interest. Short-term moving averages (5 and 20 EMA) have formed bullish crossovers, and the price is oscillating above the Bollinger middle band. The MACD recently generated a bullish crossover which reinforces the likelihood of further gains. The development of a bullish engulfing candlestick pattern suggests a potential acceleration in buying momentum within the next 24 hours. Support levels remain robust, ideal for tactical entry on dips.

Technical Trend:  XAUUSD is currently in a decisively bullish trend, exhibiting strong momentum and elevated volatility ideal for active trading.

Technical analysis reveals a strongly bullish XAUUSD setup. The daily hammer candlestick and expanding MACD histogram support sustained uptrend momentum, while the hourly bullish engulfing pattern signals near-term buying strength. Stable volume conditions further underpin potential advances. A break above $5,200 would likely trigger a fresh wave of buying interest, fueling a possible rally towards $6,000. Investors should align their strategies with technical signals and remain vigilant around the US PPI release for potential volatility spikes.

Today’s economic calendar (GMT+1) features key releases including Japan’s Core CPI, Industrial Production, and Retail Sales, as well as various European retail and unemployment data. Most notably for XAUUSD is the US Producer Price Index (PPI) at 14:30 GMT+1. This US inflation measure could significantly impact gold prices: a softer-than-expected PPI may push gold higher on diminished inflation fears, while a stronger reading could bolster the US dollar and pressure gold prices. Traders are advised to watch this data closely for market-moving cues.

Resistance & Support

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