Just five days ago, we noted that gold was approaching the $3,000 level and suggested that a breakout could occur this month.
Yesterday, as shown on the XAU/USD chart, the spot price of gold rose above the psychological $3,000 mark for the first time ever. The new all-time high now stands at around $3,045.
Why Is Gold Rising?
Bullish sentiment is being driven by traders positioning themselves ahead of a key event—the Federal Reserve’s interest rate decision, set to be announced today. According to ForexFactory, analysts expect rates to remain unchanged at 4.5%, but surprises cannot be ruled out.
Additionally, gold is becoming more attractive as a safe-haven asset. As reported by Reuters:
→ Tensions in the Middle East are escalating—Israel warns of further casualties, as airstrikes in Gaza have already resulted in over 400 deaths.
→ Gold is gaining amid uncertainty over US tariffs.
Technical Analysis of XAU/USD Chart
In the short term, gold’s price action has formed movements that outline an ascending channel (marked in blue), with key developments including:
→ A breakout (as shown by the arrow) above not only the psychological $3,000 level but also the upper boundary of the channel.
→ A prior consolidation zone formed between $3,000 and $2,980.
It seems the bulls were looking for confirmation and confidence before attempting to break through resistance. The fact that they succeeded suggests this resistance zone may now act as support, making a retest of $3,000 possible.
However, the future direction of gold prices will largely depend on the news backdrop. Brace for volatility—the Fed’s interest rate decision will be released today at 21:00 GMT+3, followed by a press conference by Chair Jerome Powell at 21:30 GMT+3.
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