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Gold price rebounds from key support at $2,955, aiming to break its losing streak.
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Bullion remains the preferred safe-haven asset amid stagflation and recession concerns.
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Gold jumps nearly 1% intraday, climbing back above $3,010 after touching $2,955.
Gold price (XAU/USD) is trading slightly above the $3,000 mark on Tuesday, regaining ground alongside equities after a sharp two-day selloff. This rebound is underpinned by both technical factors and escalating geopolitical tensions, particularly the intensifying trade conflict between the United States and China. US President Donald Trump has raised the stakes by threatening an additional 50% tariff on Chinese imports, prompting a firm response from Beijing, which vowed to “fight to the end.”
Meanwhile, the US bond market is experiencing heightened volatility, with traders dramatically adjusting their expectations for Federal Reserve policy. At one point on Monday, market participants were pricing in as many as five interest rate cuts in 2025— a sharp pivot from the previous one-or-none outlook just a week earlier.
Daily Market Drivers: Gold Road says it's undervalued, Fed rate cut expectations shift
- In corporate news, Gold Road Resources, a leading miner based in Western Australia, announced that its scoping study revealed greater gold reserves than initially estimated. The update suggests its $3.3 billion takeover offer from a joint venture partner undervalues the company, according to the Financial Review. The news added support to the broader gold market sentiment.
- On the policy front, the CME FedWatch tool now shows a 31.7% chance of a rate cut by the Fed in May, down from nearly 50% on Monday. For June, expectations remain overwhelmingly in favor of a cut, with a 96.9% probability.
- Elsewhere, global markets are showing signs of recovery. European shares rebounded from their worst three-day loss in five years, and US equity futures are signaling gains following Monday’s extreme volatility. Treasuries rebounded after a steep selloff, while oil and gold rose, and the US Dollar weakened against major currencies.
Gold Technical Outlook: Rebound still fragile
Despite gold’s safe-haven appeal, recent market-wide selloffs have weighed on the metal, proving it is not immune to broad risk-off sentiment. This suggests any recovery toward the all-time high at $3,167 may not follow a straight path, especially with trade war risks still looming.
Looking higher, immediate resistance is seen at $3,040 (R1), followed by $3,057 — a pivotal level from March 20. The next target lies at $3,097 (R2), before challenging the record high of $3,167.
To the downside, the $3,004 zone, which aligns closely with the March 14 high and the psychological $3,000 level, acts as near-term support. If breached, gold could retest $2,955 — Monday’s key bounce zone. Further downside could lead to $2,930 (55-day SMA) and $2,899 (S2), marking the final line of defense for bulls.
XAU/USD: Daily Chart
