Gold Buyers Struggle to Defend a Key Support Level
Market Overview
Gold remains a highly sought-after safe-haven asset, supported by geopolitical uncertainties in the Middle East and unexpected policy decisions from U.S. President Donald Trump. However, after a strong rally in Asian trading on Tuesday, buyers have partially withdrawn, leading to a short-term corrective phase.
Despite this temporary pullback, the medium-term uptrend remains intact, and sellers must overcome key support levels to alter the market’s structure. Given the global economic landscape, many investors may view lower gold prices as a buying opportunity.
Technical Analysis
Gold has been trading in an upward trajectory since February 7 on the 30-minute chart. However, a failure to surpass the recent high of $2,929.41 has triggered a correction. Sellers have tested support at $2,905.55, which has acted as a short-term pivot level. A break below this support could intensify the pullback toward $2,899.06, which represents the first immediate downside target. If bearish momentum persists, $2,890.80—aligned with the 161.8% Fibonacci extension of the last bullish swing—becomes the next key support.
Conversely, if buyers regain control, gold must clear resistance at $2,914.66 to resume its upward trajectory. A break above $2,929.41 would confirm a continuation of the broader uptrend.
Momentum Indicators Suggest Bearish Control. RSI below 50 reflects increased selling pressure. MACD remains negative, indicating momentum is favoring sellers. Moving averages are trending lower, further validating the corrective pullback.
Key Technical Levels
- Resistance: $2,914.66, $2,929.41
- Support: $2,905.55, $2,899.06, $2,890.80
Fundamental Drivers Affecting Gold
Markets remain cautious ahead of Federal Reserve Chair Jerome Powell’s speech, which could provide clues about the Fed’s rate outlook. The three-year U.S. Treasury auction later today will be closely monitored to assess investor demand and yield movement, potentially influencing gold prices. Additionally, political headlines, particularly trade tensions and fiscal policy, continue to shape market sentiment.
Conclusion
Gold’s short-term outlook remains corrective, with key support at $2,905.55 acting as a pivotal level. A break below $2,899.06 could accelerate losses, while a move above $2,914.66 would restore bullish momentum. Upcoming Fed statements and U.S. Treasury auctions remain key catalysts for price action.
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