Gold prices hedged up in early Tuesday trading and are expected to remain supported above the key psychological level of $3,000, with traders viewing any dips as buying opportunities, but with the upside limited by a resurgence in risk appetite, creating resistance around the recent highs of $3,056. Expectations of further rate cuts by the Federal Reserve and concerns about a US economic slowdown continue to support prices. At the same time, hopes for less aggressive US trade tariffs, optimism about a potential peace deal between Ukraine and Russia, and China’s new stimulus plans are driving greater risk appetite, weighing on gold prices. While falling below $3,000 is unlikely in the short term, this dynamic of support and resistance is expected to keep gold prices within a relatively narrow range.
Ricardo Evangelista – Senior Analyst, ActivTrades
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Source: ActivTrader
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