However, the upcoming PCE inflation data could influence gold’s next move. A stronger-than-expected report may push the U.S. Dollar higher, putting pressure on gold prices. However, if the inflation data support a dovish outlook, gold could resume its uptrend. In addition, rising geopolitical risks involving Russia and NATO further support gold’s role as a hedge in uncertain times.
XAUUSD Daily Chart – Bullish Trend
The daily chart for spot gold indicates a breakout from the ascending triangle pattern, occurring near the $3,500 region. This breakout triggered a strong upward surge. At the time of the breakout, the RSI was above 70, signalling overbought conditions.
Despite this, the price continued to rise, ignoring typical overbought warnings. A pullback toward the $3,600–$3,500 region could help neutralise these conditions. Any correction would likely offer a strong buying opportunity for investors.
Additionally, the 50-day SMA remains above the 200-day SMA, and both averages are trending upward. This alignment confirms the continuation of a strong bullish trend.
