Key Price Levels Investors Need to Monitor

The price of gold (XAUUSD) surged to an all-time high Tuesday, gaining ground for the sixth straight session, amid renewed tariff uncertainty and expectations that the Federal Reserve will cut interest rates soon.

A U.S. federal appeals court late Friday ruled that most of President Donald Trump’s “reciprocal” tariffs were not supported by current law, raising questions over whether the import levies will remain in place and reviving concerns about trade that had largely subsided in recent weeks. Investors often turn to gold, a traditional safe-haven asset, during times of economic uncertainty.

Meanwhile, investors have grown increasingly hopeful that the Fed will make its first rate cut of 2025 when its policy committee meets in two weeks. Lower interest rates buoy the commodity by reducing competition from yield-bearing assets like Treasury securities.

The August jobs report, which is due to be released Friday morning, will likely drive short-term sentiment in the precious metal. Investors will be looking for confirmation in the numbers of trends that would make it even more likely the Fed will cut its benchmark rate.

Spot gold was up 1.8% at $3,540 an ounce on Tuesday afternoon. The precious metal has gained about 35% since the start of the year, supported by central bank buying, tensions in the Middle East, and economic uncertainty.

Below, we take a closer look at gold’s chart and use technical analysis to point out key price levels worth watching.

Symmetrical Triangle Breakout

Gold’s price consolidated within a five-month symmetrical triangle before breaking out from the pattern on Friday, potentially laying the groundwork for a continuation move higher.

While the relative strength index moves toward overbought levels to signal strong price momentum, the indicator remains below 75, a reading that has coincided with minor retracements in the commodity after strong trending periods.

Importantly, increasing trading volume has accompanied recent buying in the precious metal, indicating heightened investor interest. 

Let’s identify a bullish price target to watch if gold prices continue their push higher and also point out important support levels worth monitoring during future pullbacks.

Measured Move Price Target

Investors can forecast a bullish target using the measured move technique, a study that analyzes chart patterns to project future price movements.

When applying the analysis to gold’s chart, we calculate the distance of the symmetrical triangle near its widest point and add that amount to the pattern’s top trendline. For instance, adding $500 to $3,430 projects a bullish target of $3,930, about 11% above gold’s current trading levels.

Key Support Levels Worth Monitoring

During retracements, investors should initially monitor the $3,430 level. This location may provide support near Friday’s breakout point, which also closely aligns with several peaks on the chart stretching back to April.

Finally, bullion bulls’ inability to successfully defend this level could see gold revisit lower support around $3,150. The precious metal may attract buying interest in this region near the early April high and May swing low.

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As of the date this article was written, the author does not own any of the above securities.