Gold Surges Past $3,278—Here’s Why Bulls Are Targeting $3,381 Next

Gold is back in the spotlight. On Wednesday, prices broke above $3,278 per ounce, a new all-time high as investors piled into safe-haven assets.

What’s behind the surge? U.S.–China trade tensions, a weaker U.S. dollar and a global economic slowdown.

The trigger this week? U.S. restrictions on AI chip exports are hitting American tech giants hard—Nvidia expects $5.5 billion in losses from blocked China sales. China has paused new Boeing jet orders, deepening investor unease. With risk off, gold is once again the financial “safe harbor.”

“Gold is benefiting from dollar depreciation and risk aversion,” said Tim Waterer, chief market analyst at KCM Trade.

Bulls in Control: $3,381 Next

On the charts, gold (XAU/USD) is in a clear breakout. It’s broken $3,256, the Fibonacci extension level and is grinding higher at $3,278. With momentum strong and sentiment bullish, traders are targeting $3,299, $3,343 and $3,381.

The RSI is at 74, strong momentum but getting overbought. But price is well supported above the 50-period EMA at $3,155 and the trend is up.

Key Levels

• Support: $3,256 and $3,155

• Resistance: $3,299, $3,343, $3,381

• Momentum: RSI at 74 — getting overbought

What to Watch

Next big catalyst? U.S. retail sales and Fed hints on interest rates. Traders are pricing in 90 basis points of rate cuts by year-end which could fuel more gold if confirmed.

“Gold will stay strong as long as there’s uncertainty,” said Brian Lan, Managing Director at GoldSilver Central.

From geopolitical headlines to central bank policies, this environment has investors looking for stability and gold is delivering.

Trade Setup

• Entry: Buy above $3,300 on strong volume

• Targets: $3,343 – $3,381* SL: $3,248

Classic buy-the-breakout. Be aware and manage your risk.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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