Gold Breakout Drives Uptrend as Geopolitical Tensions Rise

Market Analysis

GOLD

Gold prices rose as expected, breaking out from the consolidation zone. The MACD and overall price action signaled a continuation of the uptrend. While the RSI did not show a significant momentum shift, price action remained in line with the bullish structure, with gold now setting new all-time highs.

The uptrend is likely to continue, especially with rising global trade tensions and geopolitical risks. The U.S. military action against the Houthis in Yemen, directly impacting Iran, may further push demand for safe-haven assets like gold.

SILVER

Silver prices followed gold’s lead, seeing increased buying pressure. The market performed better than expected, aligning with the broader outlook for continued bullish momentum. The MACD shows steady increases in buying volume, and the RSI stabilizes in bullish momentum, suggesting further gains in the coming days.

We continue to expect bullish movement in silver alongside gold’s continued rise.

DXY (US Dollar Index)

The dollar is showing signs of extended consolidation. Following yesterday’s session, where gold surged, the dollar stagnated. This suggests that institutional investors may be seeking alternatives to hedge against dollar risk. The MACD is increasing in bearish volume, and the RSI is normalizing its downward momentum.

We expect further selling pressure on the dollar, but will remain cautious until a confirmed shift in direction occurs.

GBPUSD

The British Pound has gained as expected following yesterday’s bounce. The consolidation zone remains intact, likely in anticipation of developments around the April 2 tariff deadline. The MACD and RSI both indicate growing bullish volume and momentum.

A potential breakout to the upside is on the horizon, but until that happens, we will focus on range-bound opportunities within the current consolidation.

AUDUSD

The Aussie Dollar remains stagnant, showing no significant market developments. As expected, consolidation continues, and we will wait for further price action before making any directional calls.

NZDUSD

The Kiwi continues to consolidate. Our previous outlook remains unchanged as we await a clearer market breakout. The MACD suggests potential bearish volume growth, but the RSI indicates oversold conditions, signaling that the bottom boundary could potentially push prices higher.

EURUSD

The Euro has followed expectations, testing the EMA200 before showing selling potential. The RSI is stabilizing, and the MACD hints at an increase in buying volume. However, muted market movement suggests uncertainty.

While a shift back to buying within the consolidation zone is possible, we remain bearish as long as overall price action respects the downward trend.

USDJPY

The Yen continues to strengthen, breaking above 150.883. A stronger-than-expected Tokyo inflation report has increased expectations for a Bank of Japan rate hike as early as May, further supporting the Yen. The MACD and RSI both reflect increased bullish momentum, supporting the continuation of the uptrend.

We will monitor how this development impacts USDJPY prices.

USDCHF

The Swiss Franc remains consolidated, and our previous analysis stands. We are holding off on any calls until we see a clear breakout in either direction.

USDCAD

The Canadian Dollar remains in consolidation, and we continue to monitor the market for potential direction. We are cautious until we see more movement and will wait for clearer market breakout signals.

COT Reports Analysis

  • AUD – WEAK (4/5)
  • GBP – STRONG (5/5)
  • CAD – WEAK (4/5)
  • EUR – STRONG (5/5)
  • JPY – STRONG (4/5)
  • CHF – WEAK (4/5)
  • USD – STRONG (3/5)
  • NZD – WEAK (4/5)
  • GOLD – STRONG (5/5)
  • SILVER – STRONG (5/5)

Final Thoughts

Gold continues to show strong bullish momentum, supported by geopolitical tensions and trade uncertainties. The USD faces consolidation, with potential selling pressure building. Silver remains bullish, following gold’s rise.

As tariffs and global tensions evolve, we expect further volatility across key currency pairs. The coming days will likely provide clearer direction for GBPUSD, AUDUSD, and EURUSD as we await developments on U.S. tariffs and interest rates.

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