💡 Gold remains a beneficiary of global uncertainty and is approaching the $4,100 barrier
GOLD continues its rapid upward movement, gaining over 1.7% today even after President Trump slightly softened his rhetoric regarding possible tariff escalation with China, expressing hope for a trade agreement on the Truth platform. Despite a robust rebound in Wall Street index futures following the biggest sell-off since April, gold keeps setting new price records – today the ounce surpassed $4,078. Investors remain cautious, treating gold as a key hedge in times of uncertainty and global economic-political turbulence, and even a temporary calm in equity markets does not weaken demand for the metal.
Such momentum may be driven by rising expectations for further interest rate cuts in the US and ongoing inflows into gold-focused ETFs and central banks. Trump’s announcement of potential 100% tariffs on Chinese goods and export restrictions on key software have heightened market anxiety. This is further confirmed by China’s intensifying export restrictions on rare earth metals, elevating risks for global supply chains. The rebound in indexes proves short-lived, while gold sustains its rally as a safe haven. The situation demonstrates that the market remains unconvinced about lasting de-escalation—hence, gold continues to benefit from global uncertainty.
GOLD is extending its most dynamic upward streak since February and March 2024, considering the 14-day RSI indicator. From a technical perspective, GOLD remains clearly above its 50-day EMA, further highlighting the impressive dynamic of recent gains. However, it is worth noting that this condition has persisted for a long time, theoretically pointing to the possibility of downward corrections. On the chart, a key support area might be at $3,970 per ounce, which marked a local low on October 10. A break below that zone could theoretically open the way for deeper declines toward the 50-day EMA. On the other hand, persistent uncertainty around trade/the US government shutdown and the dynamic trend in gold may continue to support the protracted buying pressure in GOLD. Source: xStation
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