GOLD Analysis: Consolidation is Inevitable

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GOLD for May 29, 2025.

Fundamental Analysis of GOLD

GOLD Key Takeaways

A three-judge panel at the US Court of International Trade blocked Trump’s global tariffs, including his “Liberation Day” tariffs from April 2 and anti-fentanyl tariffs on China, Mexico, and Canada. The court granted a permanent injunction and gave the administration 10 days to comply.

The ruling halts Trump’s 30% China tariffs, 25% tariffs on some Mexican and Canadian goods, and 10% universal tariffs on most imports. However, it preserves 25% tariffs on autos, auto parts, steel, and aluminum, which were imposed under different legal authority.

The decision could stop most of Trump’s tariff program before trade deals are finalized, though it faces potential appeals to higher courts.

Technical Analysis of GOLD

GOLD Daily Chart Insights

Trend

The chart shows a strong uptrend from early 2025, with higher highs and higher lows. However, recent price action indicates some consolidation and possible short-term weakness, as the price has pulled back from its peak and is testing support near the short-term moving average.

Momentum

The Stochastic Oscillator is currently in the upper-middle range (around 65-70), having recently crossed down from overbought territory. This suggests waning bullish momentum and the potential for further short-term downside or consolidation.

Support & Resistance

• Immediate Support: Around $3,200–$3,250, where the price has recently found a base during minor pullbacks.
• Immediate Resistance: Around $3,450–$3,500, where the price has encountered selling pressure in recent highs.

GOLD 2-hour Chart Analysis

The short-term outlook is neutral, with the price at a critical juncture near $3,250. A bounce from this support level could lead to a recovery toward $3,350, while a break below might trigger a deeper correction to $3,200. Monitor the Stochastic for signs of reversal and volume for confirmation of any breakout.

Possible Breakthroughs

• Upside Breakout: A move above $3,320 with strong volume could signal a resumption of the uptrend, targeting $3,350 and potentially $3,400. This would require confirmation from increased buying pressure.
• Downside Breakout: A break below $3,240 could lead to a test of $3,200, and further weakness might push the price toward $3,150, aligning with the longer-term uptrend line.

GOLD Pivot Indicator

The short-term outlook is bearish following the recent drop, but the oversold Stochastic suggests a possible temporary recovery.

Possible Breakthroughs

• Upside Breakout: A move above $3,290 could signal a reversal, targeting $3,320. A break above this level might indicate a return to bullish momentum.
• Downside Breakout: A drop below $3,250 could lead to further declines toward $3,200, with potential for an extended correction if support fails.

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