Gold Price Holds $3,020 as Fed Signals Cuts and Geopolitical Risks Persist
Gold prices are holding firm near $3,020, supported by geopolitical tensions and a dovish tone from the U.S. Federal Reserve.
The Fed held interest rates steady last week at 4.25%–4.50%, reaffirming its forecast for two rate cuts by the end of 2025. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, often attracting risk-averse investors.
Meanwhile, U.S. President Donald Trump’s announcement of reciprocal tariffs, set to take effect on April 2, is adding another layer of uncertainty. Although Trump hinted at potential flexibility, markets remain cautious about the impact on inflation and economic growth. In this environment, gold continues to act as a hedge, though momentum has slowed as traders await more clarity.
Peace Talks and Global Tensions Shape Sentiment
A key focus for traders is the upcoming U.S.-Russia dialogue over a Black Sea ceasefire, which could ease geopolitical concerns. On the other hand, an Israeli airstrike in Gaza that killed five, including a Hamas political figure, is keeping regional tensions high.
“Gold remains well-positioned if markets stay edgy about tariffs’ impact on growth,” said Tim Waterer, chief analyst at KCM Trade. “However, any progress on the Russia-Ukraine ceasefire front may sap some of that upside momentum.”
A stronger U.S. dollar, trading near its highest level since early March, is also limiting gold’s appeal for foreign buyers. The greenback’s strength makes dollar-denominated gold more expensive internationally, often slowing demand.
Gold Technical Levels to Watch This Week
On the 4-hour chart, gold is consolidating within a well-defined bullish channel. The price is currently trading at $3,020.20, sitting above the 50-day EMA at $3,002.80—a level that continues to attract buyers. The pivot at $3,013.86 is key for gauging short-term direction.
If gold clears resistance at $3,038.66, it could retest $3,057.49, with a further push toward $3,074.98 possible if bullish sentiment builds. However, a break below $3,002.80 could signal weakness, exposing support levels at $2,999.33 and $2,979.05.
Key Technical Takeaways:
Gold holds above the 50-day EMA at $3,002.80, maintaining bullish structure
Resistance levels are $3,038.66, $3,057.49, and $3,074.98
A break below $3,002.80 could shift focus to $2,979.05 support
With traders closely watching central bank policy shifts and diplomatic developments, gold’s next move will likely be event-driven. For now, the precious metal remains in a holding pattern, but well-supported for further upside.
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