The recent surge in the price of gold continues to attract traders’ attention, with a focus on the potential for further bullish momentum. Gold prices have experienced a slight pullback from their peak of $3,058, driven by a rebound in the US Dollar and Treasury yields as the Federal Reserve signals a cautious approach to rate cuts. Despite this retreat, gold remains a favorable “buy-the-dips” opportunity on the daily chart amidst ongoing global uncertainties.

Traders are currently capitalizing on their long positions in gold following a remarkable rally, while preparing for the upcoming US core Personal Consumption Expenditures Price Index report. The expectation of two Federal Reserve interest rate cuts this year, coupled with concerns over President Trump’s trade policies, continues to support gold as a safe-haven asset. Although Fed Chair Jerome Powell indicated a reluctance to cut rates hastily, the prospect of rate reductions remains, fueling optimism among gold investors.

Moreover, the Fed’s apprehension about stagflation, exacerbated by trade tensions, reinforces gold’s appeal as a hedge against inflation. Geopolitical tensions in the Middle East, particularly between Israel and Hamas, further contribute to the demand for gold as a haven asset. Recent airstrikes in Gaza have escalated violence, adding to the broader market uncertainties.

Looking ahead, market participants are closely monitoring upcoming speeches by Federal Reserve officials and President Trump’s address for insights into the potential impact of reciprocal tariffs effective from April 2. The ongoing uncertainty surrounding the Russia-Ukraine truce adds another layer of complexity to the market dynamics.

From a technical standpoint, the gold price’s bullish trajectory remains intact, supported by an ascending triangle breakout pattern. While a temporary pullback may be on the horizon as the Relative Strength Index eases from overbought levels, the overall outlook favors further upside potential. In case of a corrective decline, key support levels to watch include $3,023 and $3,000, with further downside support at $2,982 and $2,945. Conversely, a resurgence in buying interest could propel gold towards retesting the record high of $3,056, with a potential target of $3,080.

In conclusion, the current environment of economic uncertainties, geopolitical tensions, and dovish monetary policy stances supports the bullish outlook for gold prices. Traders are closely monitoring key events and indicators for cues on the precious metal’s future trajectory, with a favorable sentiment towards maintaining long positions in gold.