Gold (XAU/USD) surged to a two-week high on Tuesday as uncertainty deepened following President Trump’s surprise move to fire Federal Reserve Governor Cook. The market reaction highlights renewed demand for safe-haven assets amid political and monetary tensions in the U.S.
Political Shock Fuels Gold Demand
The latest escalation between Trump and U.S. policymakers has rattled investors. While Trump’s earlier campaign to remove Fed Chair Powell stalled, his dismissal of Governor Cook revives concerns about political interference in monetary policy.
Markets now speculate whether Trump will push harder to secure a more dovish majority within the Federal Open Market Committee (FOMC), after failing to convince members to deliver deeper rate cuts.
Technical Outlook: Bulls Gaining Momentum
Gold’s surge cracked a key barrier at $3385 (upper triangle boundary / Fibonacci 76.4% retracement of the $3408–$331 bear leg). However, a decisive break above remains elusive.
- Bullish Signals: A potential bullish engulfing pattern is forming on the daily chart, while price action remains underpinned by the thick Ichimoku cloud.
- Mixed Picture: Neutral momentum indicators and overbought stochastic readings limit immediate upside potential.
To maintain bullish momentum, traders will look for:
- A daily close above $3360 (broken 50% Fibo level).
- A close above $3371 (broken 61.8% Fibo) to boost optimism for a breakout.
Such moves would open the way toward $3400–$3408, with further resistance at $3431.
Key Levels to Watch
- Resistance: 3385, 3400, 3408, 3431 – Swap Hunter gives you the best prices to SELL at to Earn the best Swaps.
- Support: 3371, 3360, 3353, 3348 – Swap Hunter gives you the best hedge trade to minimize your Risk.
Bottom Line
Gold remains well-supported by uncertainty around Trump’s clash with the Fed. A break above $3385 could confirm bullish momentum, with the $3400–$3408 zone acting as a critical barrier. However, traders should remain cautious of overbought conditions and watch daily closes for confirmation.
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