Golden Streak: 7-Week Rally Drives Gold Toward the $3,000 Milestone

Gold continues to exhibit strong bullish momentum, extending its seven-week rally as it approaches the key $3,000 per troy ounce mark. The metal’s resilience is underscored by consistent higher highs and higher lows, supported by robust technical indicators. Price action remains above key moving averages, signaling sustained buying pressure, while momentum oscillators point to ongoing upside potential. However, signs of negative divergence suggest traders should stay vigilant for potential shifts in momentum. With gold trading near record levels, market participants are closely monitoring key resistance and support zones for potential breakout or retracement opportunities.

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Gold has maintained a strong upward trajectory for seven consecutive weeks, consistently posting higher highs and higher lows as it approaches the key psychological level of $3,000 per troy ounce. A decisive breakout above the $2,942.48 resistance could accelerate the rally, setting the stage for fresh record highs in the near term.

Technical indicators support the bullish outlook. Price action remains above both the 20-period and 50-period Exponential Moving Averages (EMAs), reinforcing the prevailing buying momentum. The Momentum Oscillator continues to hold above 100, signaling sustained upward pressure, while the Relative Strength Index (RSI) remains above 50, indicating persistent demand.

However, caution is warranted as negative divergence emerges, hinting at a potential slowdown in momentum. While the broader trend remains constructive, traders should watch for confirmation of a breakout or signs of exhaustion before positioning for further upside.

Should the bulls maintain market control, traders may direct their attention toward the four potential resistance levels below:

2,990.97: The initial resistance level is set at 2,990.97, which mirrors the 161.8% Fibonacci Extension drawn from the high point, 2,942.48, to the low point, 2,864.01.

3,019.73: The second price target is identified at 3,019.73, representing the weekly resistance, R3, calculated using the standard Pivot Points methodology.

3,069.44: The third price objective is determined at 3,069.44, which corresponds with the 261.8% Fibonacci Extension drawn from the high point, 2,942.48, to the low point, 2,864.01.

3,196.41: An additional price target is established at 3,196.46, representing the 4.236% Fibonacci Extension drawn from the high point, 2,942.48, to the low point, 2,864.01.

Should the bears take market control, traders may consider the four potential support levels listed below:

2,864.01: The initial support level is seen at 2,864.01, corresponding to the low point from February 12.

2,787.43: The second support level is estimated at 2,787.43, representing 38.2% Fibonacci Retracement drawn from 2,536.59 to 2,942.48.

2,721.14: The third support level is identified at 2,721.14, reflecting the peak marked on November 25.

2,583.21: An additional downside target is 2,583.21, mirroring the daily low from November 14.

Gold held steady near its record high as renewed U.S. tariff threats from Donald Trump and rising geopolitical tensions bolstered its safe-haven appeal. Bullion traded near $2,935 an ounce after a strong rally, driven by Trump’s proposed 25% tariffs on key imports and uncertainty over U.S. foreign policy. Meanwhile, Goldman Sachs raised its year-end gold target to $3,100, citing strong central bank demand, with a potential surge to $3,300 if economic uncertainty persists. Federal Reserve officials signaled a continued restrictive policy stance, adding to market caution.

Gold’s strong upward momentum remains intact as it hovers near record levels, with bullish technical indicators reinforcing the trend. The metal’s approach toward the key $3,000 per troy ounce mark suggests the potential for further gains, particularly if resistance levels are decisively breached. However, signs of negative divergence and broader market uncertainties warrant caution. Traders should closely monitor key technical levels and macroeconomic developments for confirmation of the next move. While gold’s safe-haven appeal continues to drive demand, market participants must remain vigilant for potential shifts in sentiment and momentum.