Gold prices have remained in a narrow range near their all-time high of $2,955 per ounce, with support holding firm at $2,920 over the past three days. As the new trading week begins, the precious metal continues to hover around $2,935 during the European session, struggling to gain significant momentum.
The current price action reflects a balance between bullish drivers and resistance from broader macroeconomic factors. On the one hand, heightened risk aversion—driven by geopolitical tensions and concerns surrounding trade tariffs introduced by former U.S. President Donald Trump—has bolstered demand for gold as a safe-haven asset. Additionally, persistent selling pressure on the U.S. dollar has provided further support for the metal.
On the other hand, expectations that the Federal Reserve will keep interest rates higher for an extended period due to ongoing inflationary pressures have limited gold’s upside potential. As a non-yielding asset, gold becomes less attractive when interest rates remain elevated, making yield-bearing alternatives more appealing.
Gold Price Outlook: $2,920 Key Support as Metal Eyes Fresh Highs
From a technical perspective, the bullish trendline seen in recent weeks closely aligns with the $2,920 support level. A sustained hold at this level could pave the way for gold to reach new record highs in the near term. If buyers fail to maintain support at $2,920, the next key level to watch is the psychological barrier of $2,900.
While gold’s consolidation suggests underlying strength, a break below these key support levels could shift market sentiment and trigger a deeper pullback. However, continued risk aversion and dollar weakness may provide the necessary catalyst for gold to test fresh highs before the month ends.
Gold reached a record high of $2,955 before pulling back to find support at the 100-hour exponential moving average (EMA). Concerns over Trump’s tariff policies and persistent inflation risks have kept demand for gold robust.
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