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After reviewing the movements of the gold futures amid changing face of global concerns this weekend has generated fresh tug of war between the gold bears and the bulls on Monday as the haven demand buoyed by reports that US President Donald Trump planned to send offensive weapons to Ukraine, potentially escalating a conflict with Russia while during the last week Trump was attempting to resolve Middle East crises.
Undoubtedly, gold futures behaved on Monday, exactly as I predicted in my last analysis on last Friday as despite the gap-up opening this week, gold futures are still facing stiff resistance at $3390 as the bearish pressure still looks evident enough to keep the futures in bearish mode till the first week of August, 2025 when the Trump’s tariff deadline ends.
On Monday, movements of the gold futures in a tight range as the gold seems to be in pressure due to weakening safe-haven demand at the current prices levels which evident enough by the current movements of the gold futures as after testing the day’s high at $3387.80, currently trading at the day’s low now at $3378 which has created a bearish doji in the daily chart that could push the gold futures back to the significant support at the 50 DMA at $3340.
Levels to Watch
In the daily chart, gold futures could take a sustainable move below the significant support at the 50 DMA if not able to sustain above the immediate resistance at $3396, as the 20 DMA looks ready to pierce the 50 DMA in today’s session if the gold futures continue to teeter at the current level.
Undoubtedly, this will complete the formation of a bearish crossover that will continue to extend selling pressure on gold futures ahead, despite some positive developments that favor gold bulls.
In the 1- Hour chart, gold futures are giving mixed cues as the engulfing seems bullish, gold futures are only trying to hold the immediate support at the 9 DMA which is about to move below the 20 DMA if the gold futures test the immediate support at $3365 in a short while, next targets will be at $3352 and $3339.
Inversely, if the gold futures break out above the immediate resistance at $3396, the next target could be $3410. However, a sustainable move above that level would be required to continue the rally; otherwise, selling would likely follow any such up move due to the formation of an evening star.
Disclaimer: Readers are advised to take any position in the gold futures at their own risk, as this analysis is based only on observations.