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Gold prices (XAU/USD) are experiencing fluctuations after reaching an all-time high of $3,057. Despite recent losses, the weekly performance remains positive, with the metal trading around $3,030. Several factors influence this movement, including market events and geopolitical tensions. One key event affecting gold's price action is the Quadruple Witching, where multiple futures and options contracts expire simultaneously. Additionally, global instability, including various conflicts, keeps the demand for gold strong as investors seek safe-haven assets.

Gold's Price Action and Market Movers

Gold has been upward, gaining 16% in 2025 alone. This rally has led to 15 record highs this year, making it one of the strongest-performing assets. Several major banks have revised their forecasts, with some expecting prices to reach $3,500 an ounce in the coming months.

The recent dip in gold prices aligns with a broader market trend driven by external factors. US President Donald Trump’s recent actions to boost domestic mineral production have added uncertainty. The administration aims to reduce dependence on imports by invoking emergency powers, which could affect gold’s long-term supply and demand dynamics. Additionally, the Ontario Teachers’ Pension Plan reported a 9.4% gain last year, partially due to its exposure to commodities like gold. This reflects the metal’s strong appeal among institutional investors.

Meanwhile, global economic developments also impact gold prices. Indonesian mining stocks faced significant losses following government plans to increase royalties on producers. This decision highlights how policy changes in key mining regions can affect market sentiment and commodity prices.

Technical Analysis

The gold price chart reveals a strong bullish trend within an ascending channel. This pattern, visible since 2016, indicates a long-term uptrend supported by periodic corrections and consolidation phases. Gold recently broke above key resistance levels, reaching the upper boundary of the ascending channel.

A notable buying opportunity occurred in 2024 when gold formed a strong support base before breaking out. This pattern, resembling an inverse head and shoulders, suggested a bullish continuation. Since then, gold has surged, supported by geopolitical concerns and economic uncertainty.

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Currently, gold appears overextended as it reaches the channel's upper trendline. This suggests the possibility of a pullback or consolidation before the next leg higher. Traders should monitor price action closely, as corrections often provide new buying opportunities. If gold retraces, support could be found near $2,800, where previous resistance turned into support.

How to Trade Gold During Crysis?

The chart below shows a successful gold trade. The trade was entered at $2,871 with a stop loss set at $2,830 and a target of $3,050. The position was eventually closed at $3,025, securing a profit of $154 per unit. This setup demonstrates the importance of strategic entry and exit points. By setting a stop loss, the risk was controlled, and by taking profit near the target, gains were maximized. This trade was sent via WhatsApp to premium members and resulted in a profitable outcome.

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Conclusion

Gold prices continue to rise, driven by market events, geopolitical tensions, and investor demand. The metal remains a favoured safe-haven asset amid global uncertainties. However, technical indicators suggest a possible short-term correction as gold approaches overbought levels within its long-term ascending channel. Investors should stay cautious and watch for potential pullbacks that may present strategic buying opportunities. With strong fundamentals and bullish momentum, gold remains a key asset in the financial markets.To receive gold and silver trading signals, please subscribe here.

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