Gold Price News: Gold Moves Higher as Dip Attracts Buyers

Gold prices snapped a three-day losing streak on Tuesday, posting incremental gains to move back above the $3,020 an ounce level.

Prices crept up to an intraday high of $3,036 an ounce, compared with around $3,011 an ounce in late trades on Monday. The modest uptick came as gold’s recent losses attracted buyers back into the market.

Gold caught between opposites

Gold prices were caught between opposing forces, with the upside limited due to a more ‘risk-on’ mood in the wider financial markets, while at the same time, uncertainty over US trade policies continued to keep safe havens in the spotlight.

Stock markets have mainly been in a bullish mood since the lows of mid-March, and this has taken the edge off gold as a contrarian bet, limiting the precious metal’s upward march. Nevertheless, there are enough wild card factors still in play to keep the markets guessing, with the Israel/Palestine tensions and Russia/Ukraine conflict continuing to provide geopolitical uncertainties.

Technical analysis

On the technical charts, gold managed to hold up above rising oblique major support at $3,000 an ounce on Tuesday, and with this being a round number, it also provides a degree of psychological support too. Should this level fail, eyes would turn to the 20-day moving average, which stood at $2,954 as of Tuesday evening.

Upcoming data

Looking ahead, Wednesday will bring US durable goods orders for February, with the market expecting a 1% drop following a 3.1% increase in January. Then on Thursday, attention will turn to the US GDP growth figures for Q4, 2024, the weekly initial jobless claims figures and Friday’s monthly US PCE price index – the Fed’s preferred measure of inflation – for clues about interest rate changes in the coming months.