Gold is also facing competition from Bitcoin and reaching new highs, fueled by hopes for looser crypto regulations. Meanwhile, US stocks are benefiting from the possibility of corporate tax cuts and deregulation. Moreover, Trump’s claim that he could quickly end the war between Ukraine and Russia has reduced demand for gold as a safe haven. Some investors expect reduced geopolitical risks with the election of Donald Trump as president. However, tensions in the Middle East continue to underpin gold’s appeal as a safe haven amid ongoing uncertainties.
Gold (XAU) Technical Analysis
Gold Daily Chart – Support Region
The daily chart for gold shows that the price correction started from the strong resistance at $2,790 on the red dotted trendline. The price is currently testing the support of the rising widening wedge and the rising channel mid-trendline at $2,595.
The overall trend remains strongly bullish, with the price trying to find support in the $2,540 to $2,595 zone before the next strong move towards $2,800. Increased inflation concerns and strong demand for Bitcoin have shifted investors’ focus to cryptocurrencies. This shift has resulted in a decline in the gold price. However, inflation is likely to create a bullish bias in the gold market. A price correction is considered a buy signal.