Technical signals emphasize overboughteconditions
The gold market shows signs of ‘Hot’, with prices considerably above the 50-day advancing average at $ 2,743.95. This technical setup often indicates an overbought market, which increases the risk of withdrawal. The most important support is at $ 2,864.33-one interruption below this level, the short-term momentum can shift to the disadvantage. Conversely, a movement would reinforce the current upward trend through the $ 2,954.96 High.
Tariff uncertainty increases the demand for safe haven
The newly proposed rates of Trump – including tasks on wood and forest products, in addition to previous rates for imported cars, semiconductors and medicines – have kept market sentiment carefully. These measures contribute to the existing rate of 10% on Chinese import and 25% rates for steel and aluminum. The threat of increased inflation of this policy could force the Federal Reserve to maintain higher interest rates, as a result of which the appeal of Gold may be reduced if a non-yield of assets is possible.
Physical question weak in China and India
Despite Gold’s strong performance, physical demand in important markets such as China and India remains weak because of the increased price levels. The high costs have put traditional buyers offside, which suggests that the current rally is mainly powered by investments and covering of demand instead of physical consumption.