A new high in XAUUSD awaiting?

Gold prices are experiencing ongoing upward momentum as investors navigate various economic uncertainties and geopolitical events. As a favoured safe-haven asset, traders are closely monitoring price movements, sentiment indicators, and significant technical levels.

As of February 14, 2025, gold (XAU/USD) is trading around $2,932.20, reflecting a minor increase of 0.14% from the previous close. The daily price range has fluctuated between $2,900.77 and $2,909.12, with the market exhibiting a bullish outlook.

Resistance is identified at $2,937.91, while immediate support is positioned at $2,910.49. If gold remains above $2,910, the next target may reach $3,000. However, if it drops below $2,910, it could decline to $2,880. Currently, the RSI stands at 79.22, suggesting overbought conditions. The market momentum remains positive, backed by strong demand from institutional investors, although moderate volatility is expected with upcoming economic data releases.

Several fundamental factors are propelling gold prices, including ongoing safe-haven demand amid geopolitical tensions and inflation concerns. Investors are solidifying their gold holdings as a safeguard against economic uncertainties, and central banks are also increasing their gold reserves, aiding in price elevation. Speculation regarding interest rates is another significant influence, as the Federal Reserve's stance impacts gold prices. Anticipated rate cuts could lead to further gains for gold, given its inverse relationship with bond yields. Additionally, market liquidity and institutional investments are supporting the rise in gold prices, with heightened interest from hedge funds and sovereign wealth funds resulting in consistent inflows.

In the near term, if gold maintains levels above $2,910, the next target is likely $3,000, with further potential to approach $3,098 in the coming weeks. On the downside, if gold falls below $2,910, a retracement to $2,880 or even $2,850 could occur, although strong buying interest at lower levels may mitigate declines.

While gold's bullish trend continues, the overbought conditions signal that traders should remain cautious of potential short-term corrections. The next significant movement in gold prices will likely be influenced by critical economic data and statements from central banks. We welcome your insights on the current market situation.