XAU  – Benefiting from Safe-Haven Buying, Gold Technically Breaks Through and Extends its Rally

Gold surged on Monday, hitting a three-week high. Following the Supreme Court's rejection of his previous tariff plan, US President Trump announced a temporary tariff increase to 15%, exacerbating market risk aversion and driving funds into gold. A complex mix of global economic and political issues, higher-than-expected US inflation, and the resumption of trading in the Chinese market after the holiday may further push gold prices higher. Gold prices rose above $5240 in early trading on Tuesday but subsequently retreated, briefly touching $5145. While the rapid short-term gains may trigger technical consolidation, the downside potential is likely limited given the ongoing uncertainty surrounding US policy and geopolitical risks.

Gold also saw a key technical breakout, breaking above the descending trendline. After a period of consolidation, gold prices stabilized above $5010 and gradually climbed, even breaking above the recent range top on Monday. From a technical perspective, the 25-day moving average has been confirmed to hold, currently at $5017, providing key support for future price movements. If gold prices can remain above this moving average before Tuesday, the technical pattern will support a test of the historical high of $5602. Based on previous price swings, the upside targets are $5269, $5344, $5418, and $5456. On the downside, the first support levels to watch are the 4-day and 9-day moving averages at $5130 and $5037 respectively, with the 25-day moving average remaining crucial at $5016. The short-term resistance is forcasted at $5244 and $5284, with the next levels at $5304 and $5321. The supporting levels are initially seen at $5184 and $5168, followed by $5124 and $5040.

London Gold Price, February 24:
Forcasted Early Range: 5204 – 5244
Resistance: 5284 – 5304 – 5321
Support: 5184 – 5168 – 5124

SPDR Gold Trust Holdings:
February 9th – 1,079.66 tons
February 10th – 1,079.32 tons
February 11th – 1,081.32 tons
February 12th – 1,076.18 tons
February 13th – 1,077.04 tons
February 19th – 1,078.75 tons
February 20th – 1,078.75 tons
February 23rd – 1,086.47 tons

23/2 AM London Gold Fix: $5147.55
23/2 PM London Gold Fix: $5191.4 

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