gold prices continued their upward trajectory on Thursday morning, regaining momentum after a brief decline the previous day. The metal’s rally is occurring amidst a backdrop of heightened geopolitical tensions and uncertainty surrounding U.S. monetary policy. Investors are closely monitoring developments related to pending appointments at the Federal Reserve, including replacements for Governor Adriana Kugler and Chair Jerome Powell, while awaiting key economic data that could influence the Fed’s stance.
Market attention remains focused on upcoming U.S. economic indicators, notably the weekly Jobless Claims report and the preliminary second-quarter Unit Labor Cost figures. Recent labor market data has indicated softening conditions, with July employment figures falling short of expectations and a slowdown in the services sector raising concerns over the strength of the U.S. economy. These signs of softening economic momentum have fueled speculation that the Federal Reserve might adopt a more accommodative monetary policy, with some investors positioning for a potential rate cut as early as September.
Meanwhile, geopolitical tensions continue to support gold ’s safe-haven appeal. Recent tariff threats from President Donald Trump have escalated, with reports suggesting the possibility of an additional 15% tariff on all Japanese imports. There are also warnings of new tariffs on Chinese goods and imports of Russian oil via India, further fueling market uncertainty and emphasizing the importance of gold as a protective asset.
Technical analysis indicates a constructive outlook for gold in the near term. A bullish crossover in momentum indicators and an elevated relative strength index near 55 suggest further upside potential. Key resistance levels are identified around $3,400, $3,440, and a prominent high of $3,453 from June. Conversely, support remains solid at $3,350, with additional downside risk if prices break below this level, potentially exposing the metal to declines toward $3,300 and the 100-day moving average around $3,282.
