All Roads Lead to Gold: Traders Target $3,500 and Beyond in XAU
Gold kept printing new record highs last week, surging to $3,357, as everything seems to favor XAU, which imply $3,500 and $4,000 soon.
Quick overview
- Gold is experiencing a historic rally driven by global risks, Fed uncertainty, and safe haven demand.
- Despite rising Treasury yields, gold prices have surged, recently reaching a record high of $3,370.
- Federal Reserve Chair Jerome Powell's cautious stance on interest rates has further fueled gold's appeal.
- Investment banks are increasingly bullish on gold, with forecasts suggesting potential targets of $3,500 to $4,000.
Gold is charging toward new record highs on every session, as a perfect storm of global risks, Fed uncertainty, and safe haven demand continues to power the precious metal’s historic rally.
Gold’s Unstoppable Momentum: $3,500 Then $4K?
Gold buyers appear to be searching for any reason to accumulate the metal — and markets keep delivering. From geopolitical flare-ups to central bank indecision, nearly every development has added fuel to the fire, pushing gold higher and keeping sentiment bullish.
Despite rising Treasury yields, gold defied typical headwinds last week and climbed once again this week as yields reversed lower. In early April, gold corrected sharply from highs above $3,200 to just under $3,000, triggered by margin call liquidations during a broader equity market selloff.
Gold Chart Daily – Bounced $400 Off the 50 SMA
However, the pullback was brief. Gold rebounded strongly, establishing firm support near the 50-week simple moving average (SMA), and went on to rally more than $400 in just two weeks — the largest such move in its history.
Powell’s Policy Pause Adds to Gold’s Appeal
Federal Reserve Chair Jerome Powell has added further bullish fuel to the gold narrative. His recent remarks highlighted the uncertain and potentially inflationary impact of President Trump’s expanding tariff agenda. Powell stated that the size of the tariff hikes was larger than expected and could lead to a mix of slower GDP growth and persistent inflation.
Gold Chart H4 – Looking to Buy at the 20 SMA
While the Fed is in no rush to move, Powell emphasized the need to “wait for greater clarity,” signaling a cautious stance. Markets have responded by pricing in roughly 90 basis points of rate cuts by year-end, possibly beginning as soon as June or July. This dovish tilt weighed on equities and supported a renewed surge in gold prices, pushing spot XAU/USD to a fresh record high of $3,357 before resuming the uptrend today and printing another high at $3,370.
Institutional Upgrades & Technical Tailwinds
Investment banks are also turning more bullish. Goldman Sachs and UBS both revised their year-end gold forecasts higher, citing persistent demand and macro uncertainty. With trend momentum so strong, shorting gold is increasingly risky, and many traders are now on the lookout for attractive dip-buying levels.
Technically, XAU Support Sits at Several Key Zones:
$3,280: Near the 20 SMA on the 4-hour chart
$3,185: Where the 50 SMA provides interim support
$3,000: A major psychological and technical floor
With upside targets of $3,500 and potentially $4,000 being discussed, the gold market remains one of the most compelling trends in the current macro environment.
Gold Price Live Chart
[[xau-graph]]
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