Gold price climbs 1.2% this week amid rising U.S. Treasury yields
Gold Nears Record High at $2,913 Amid Geopolitical Risks and Fed Expectations.
The Gold price is inching closer to a new record high, gaining 1.2% this week and now trading at $2,913 per ounce.
The price action is currently confined within an ascending triangle formation, with support at $2,880 and resistance just 1% away of the all-time high. The metal’s upward trajectory is bolstered by technical support, geopolitical concerns, and monetary policy expectations, though rising U.S. Treasury yields and a recovering U.S. dollar may limit further gains.
After bouncing off the bullish trendline of the triangle pattern and the 50-day EMA, gold climbed 0.9% yesterday and extended gains by another 0.8% in today’s Asian session. The four-hour chart now shows RSI shifting from bearish to bullish territory, reinforcing the case for continued upside momentum.
Gold price dynamics (January 2025-February 2025). Source: TradingView.
U.S. dollar recovery and rising yields could limit Gold upside
On the fundamental side, renewed demand for safe-haven assets stems from concerns over U.S. President Donald Trump’s proposed reciprocal tariffs, which could escalate trade tensions. Additionally, expectations that the Federal Reserve will proceed with further rate cuts this year continue to support gold, as lower interest rates enhance the appeal of non-yielding assets like bullion.
However, upside potential faces headwinds. A rebound in U.S. Treasury bond yields and the U.S. dollar’s recovery from last week’s low could deter aggressive buying. Furthermore, optimism surrounding a possible delay in Trump’s tariff measures and ongoing diplomatic efforts to resolve the Russia-Ukraine conflict might reduce safe-haven demand.
If gold sustains momentum above $2,915, a push toward its record high becomes increasingly likely. Conversely, a break below $2,880 could open the door for a corrective move. For now, traders remain focused on key upcoming economic data like the FOMC minutes later this week that could dictate gold’s next move.
Gold made a double top near $2,943 per ounce but declined due to overbought conditions. The bearish engulfing candlestick pattern now acts as a technical barrier to further gains.
