Gold Rally Faces Key Resistance Test After Hitting New Highs

Published 09/09/2025, 09:13
Updated 09/09/2025, 09:44

After reviewing the movements of the gold futures in a daily chart, I find that the gold futures have tested a new high at $3698.55 on Tuesday in the face of a fresh political crisis in France, where Prime Minister Francois Bayrou resigned after losing a vote of confidence in the National Assembly while in Japan after PM Shigeru Ishiba’s resignation, and prospects of more US sanctions against Russia following a deadly weekend strike by Moscow against Ukraine.

Undoubtedly, all such developments at the global level have pushed the gold futures once again into the selling territory, where extensive bearish pressure looks evident enough to attract big bears to load fresh shorts as the growing skepticism over the impact of the Supreme Court verdict on Trump’s plea is likely to overshadow bullish moves.

Undoubtedly, several Fed officials have signaled in recent weeks that the central banks will be open to rate cuts amid signs of cooling in the labor market, but they also flagged caution over sticky inflation, especially in the face of price increases stemming from US President Donald Trump’s trade tariffs while US inflation data for August is due this week, with markets watching more upside in inflation, given that a bulk of Trump’s tariffs took effect last month.

I find that the current rally in gold which started in 2023 and accelerated after the joining of the US President Donald Trump amid surging fear among the global central banks, generated buying spree, seems to calm down as the focus will be shifted toward the final verdict by the US Supreme Court, as if the Supreme Court verdict keep the lower court ruling intact, Trump’s administration would be forced to issue massive refunds, which would be terrible for the Treasury.

Technical Levels to Watch

Gold Futures Daily Chart

In a daily chart, gold futures are showing signs of exhaustion, as despite testing a new high on Tuesday at $3698.52, they are currently trading at $3683.55, which represents significant resistance.

I find that if the gold futures do not hold the immediate support at $3616 on Tuesday, the next support at the 9 DMA at $3598 could be tested, and a breakdown below this could push the futures to test the next support at $3578.

Inversely, any upward move to test the immediate resistance at today’s high will provide a good opportunity for big bears to load fresh shorts with a stop loss at $3781 for a target at $3422 up to Sept. 16, 2025.

Disclaimer: Readers are advised to take any position in gold, as this analysis is based only on observations.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.