Gold Eyes $2900 but Faces Short-Term Pullback!

Hello dear friends, Joe is back to discuss and strategize about gold trading today!

Today, gold prices continue their upward trend after failing to break through support levels of 2807 - 2840 and 2860. The main reasons for this price increase are escalating trade tensions and gold reserve additions by China's central bank. Additionally, Dallas Fed Chair Lorie Logan indicated that inflation progress is significant, but the U.S. labor market remains too robust to prompt the central bank to cut interest rates in the near future. However, this hasn't made much impression on U.S. dollar bulls.

On the chart, the situation suggests gold could continue rising to reach 2900, at which point risks around that level will increase. Currently, prices are facing strong pressure from the resistance zone ahead, potentially setting the stage for a short-term decline. Personally, I believe this is reasonable before a breakout forms near the resistance level, signaling a breakthrough and rise to 2900. However, due to the dependence on the U.S. Non-Farm Payroll report which will influence market expectations regarding Fed interest rate prospects, prices might drop to the lower boundary of 2840 before continuing their upward movement.