According to the XAU/USD chart, gold surged above $5,170 today, marking its strongest level since the start of February. Key factors supporting the bullish move include:
→ US tariff developments – following the Supreme Court’s Friday decision to strike down Trump’s tariffs, the president reinstated them, initially at 10% and later increasing to 15% over the weekend.
→ Rising geopolitical tensions – reports suggest the US is prepared not just for targeted strikes against Iran, but for a potentially longer military campaign. The deployment of two aircraft carrier groups in the region elevates the risk of a direct confrontation, traditionally driving demand for gold.
→ End of the Chinese holiday period – the People’s Bank of China may resume buying physical gold as part of its strategy to diversify reserves away from the US dollar.
Technical Perspective on XAU/USD
Analysis from 17 February confirms that gold remains within a long-term ascending channel:
→ Bears have shown some pressure, seen in the descending resistance line (R);
→ Bulls continue to find support at the channel’s lower boundary.
The market stayed within the channel, with bulls breaking the resistance line (R), which now acts as support near $4,960.
An upward trend is visible (black lines), particularly around $5,100, where price:
→ Opened with a bullish gap;
→ Surpassed the line dividing the lower half of the channel into two quarters.
Overall, the technical picture suggests bulls remain in control, with the potential to push prices toward the channel’s median. If a pullback occurs, $5,100 is likely to provide support.
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