Markets are gearing up for a critical week, with several high-impact economic events likely to influence sentiment across currencies and commodities. Central bank rate decisions from the U.S., UK, and fresh employment data from New Zealand, the U.S., and Canada could set the tone for broader market direction. Amid this backdrop, Gold continues to attract attention as it builds on a strong technical setup, with bullish momentum pointing toward further upside.
High Impact Economic Events
Wednesday 01:45 am (GMT+3) – New Zealand: Employment Change q/q (NZD)
Wednesday 21:00 (GMT+3) – USA: Federal Funds Rate (USD)
Thursday 14:00 (GMT+3) – UK: Official Bank Rate (GBP)
Gold has extended its upward trajectory following the April 7 rebound from $2,536.38, supported by the formation of a Morning Star candlestick pattern—a well-recognized bullish reversal signal. This technical development has set the stage for the metal to challenge a new all-time high near $3,499.86 per troy ounce.
From a technical perspective, multiple indicators reinforce the prevailing uptrend. The Momentum Oscillator remains firmly above the 100 baseline, indicating sustained buying pressure. Additionally, the Relative Strength Index (RSI) continues to hold above the neutral 50 threshold, while price action remains elevated above both the 20- and 50-period exponential moving averages (EMAs). Collectively, these factors suggest a strong underlying trend and bolster bullish market sentiment.
While the broader outlook remains constructive, the possibility of a near-term consolidation or corrective pullback cannot be ignored.
Key Resistance Levels
If buyers maintain control of the market, traders may shift their focus to the following four potential resistance levels:
3499.86: The initial resistance level is estimated at 3499.86, mirroring the all-time high reached on April 22.
3684.06: The second price target is seen at 3684.06, reflecting the 161.8% Fibonacci Extension drawn from 3499.86 to 3201.80.
3982.12: The third price target is established at 3982.12, corresponding to the 261.8% Fibonacci Extension drawn from 3499.86 to 3201.80.
4083.27: An additional price objective is estimated at 4083.27.
Key Support Levels
If sellers take control of the market, traders may focus on the following four key support levels:
3201.80: The initial support level is seen at 3201.80, representing the trough marked May 1.
3114.09 The second support level is positioned at 3114.09, aligning with the weekly support, S2, calculated using the standard Pivot points methodology.
2956.38: The third downside target is noted at 2956.38, corresponding to the trough formed on April 7.
2832.57: An additional downside target is determined at 2832.57, reflecting the low point from February 28.
Fundamentals
Gold has extended its remarkable rally since early 2024 and remains one of the top-performing assets this year. While the Federal Reserve is expected to keep interest rates unchanged this week—likely limiting near-term momentum—analysts believe broader factors like inflation, geopolitical risks, and market uncertainty continue to support the precious metal’s long-term upside. A move toward new highs remains possible if economic conditions shift or rate cuts resume later in the year.
Conclusion
Gold remains at the center of market attention as key economic events unfold, with central bank decisions and employment data poised to shape broader sentiment. Technical indicators continue to support the bullish outlook, although the potential for short-term consolidation or corrective movements cannot be ignored. Amid evolving macroeconomic conditions, traders will be closely watching price action and key levels to gauge the next phase of momentum.
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