Despite this short-term pullback, gold price action shows strong bullish momentum driven by geopolitical tensions and fluctuating policy signals from the Trump administration. Fed Chair Powell’s recent warning about a possible stagflation scenario adds to concerns, supporting long-term gold demand. According to Powell, the Fed’s dual goals of controlling inflation and supporting employment could increase market uncertainty.
Moreover, the World Gold Council reported $21 billion in Q1 gold ETF inflows, the second-highest quarterly figure, with $8.6 billion recorded in March. This reflects strong investor interest in gold as a hedge. Meanwhile, US 10-year Treasury yields fell by two basis points to 4.395%, reinforcing the bullish case for gold. Despite the current correction from record levels, the price action remains bullish and points to further upside.
Gold (XAU) Technical Analysis
Gold Daily Chart – Resistance of $3,500
The daily chart for gold shows that the price broke the key level of $3,350 within the ascending broadening wedge pattern. However, due to overbought market conditions, the price reversed from the $3,500 resistance and formed a bearish hammer at that level. Gold is now consolidating around this resistance line but remains bullish, supported by trade uncertainty and global tariff concerns.
