Gold Glitters But Faces a Moment of Caution: Will Bulls Regain Control?

Gold (XAUUSD) kicked off the week with a bang, hitting fresh record highs—but Monday’s bearish reversal suggests bulls may be pausing for breath. Prices closed lower after touching new peaks, raising the risk of a short-term pullback.

If gold dips below $3193.63, it could slide toward the pivot support at $3101.20, while the 50-day moving average near $2985.88 offers solid long-term support. However, a break above $3245.85 would cancel the reversal and signal a fresh bullish leg higher.

Key drivers still support the uptrend:

• Trade war tensions are rising, with the U.S. eyeing new tariffs on tech and pharma imports, keeping safe-haven demand elevated.

• Fed rate cut bets remain strong, with markets pricing in 83 bps of easing, boosting appeal for non-yielding assets like gold.

• China’s physical demand is surging, with local gold ETFs seeing record inflows, even outpacing the U.S.