Breaking through all the barriers, Gold surges to $3500 for the first time in history!

Up by 1.60%, Gold extended its parabolic rally on Tuesday, hitting the $3500 milestone for the first time. Weakening US Dollar and escalating trade friction with China have reignited investor demand for safe-haven assets like Gold. On April 21, 2025, China issued a stern warning to countries considering trade agreements with the United States that could undermine Beijing's interests. This comes in the wake of recent U.S. actions, including the imposition of 145% tariffs on Chinese imports and growing pressure on other nations to limit trade with China.
Moreover, on April 22, 2025, China's gold reserves reached a record high of 2,292 tonnes, valued at approximately $256.7 billion, contributing to the rise in gold prices. China is increasing its gold reserves to diversify away from the U.S. dollar and hedge against geopolitical risks and economic uncertainty.

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Gold continues to exhibit remarkable strength, underpinned by a parabolic advance on the daily chart, signaling sustained bullish momentum. On the 1-hour timeframe, a breakout from a bullish flag pattern has further confirmed the positive bias in the near term, suggesting continued upside potential. Despite the daily RSI at 79.30, which indicates overbought conditions, the bullish momentum remains intact along with price holding above the 20-day SMA. 

Intraday Strategy & Trend: The intraday structure favors a buy on supports and buy on breakouts approach, with the intraday trend firmly bullish. 

Weekly Trend: The broader weekly trend remains ultra bullish

Major Resistance: 3495, 3532, 3599
Major Support: 3468, 3458, 3440