Gold (XAUUSD) reached another record high amid a multi-month rally driven by a flight to safety due to uncertainty surrounding the Trump administration’s tariff policy. Analysts warn this could reignite inflation and slow economic growth.
Bank of America strategists predict continued demand for gold this year, citing central bank buying, retail investor interest, and a rule change allowing China’s insurance industry to invest in gold for the first time.
A shooting star pattern emerged, signaling a potential bearish reversal. The relative strength index (RSI) confirms bullish momentum but sits in overbought territory, suggesting short-term profit-taking.
Bars pattern analysis projects a consolidation phase before resuming the uptrend, potentially reaching $3,395 by late May. Key support levels include $3,048, $2,953, and $2,858, offering opportunities for investors during retracements.
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