Gold’s extraordinary rally shows no sign of slowing, with spot gold surging to a new record high of $4,179.76 per ounce on Tuesday. The XAU/USD pair is now holding firm around the $4,140 level, maintaining strong intraday gains as risk aversion sweeps global markets.
Concerns continue to centre on the United States, where the federal government remains in shutdown amid ongoing budget gridlock. At the same time, renewed trade tensions between the US and China have reignited fears of a tariff battle after talks broke down and threats of reciprocal levies resurfaced.
The US dollar strengthened through much of the session but failed to gain against gold. After Wall Street’s opening, equities rebounded into positive territory, limiting gold’s upside yet leaving the metal comfortably above key support zones.
Further momentum came from Federal Reserve Chair Jerome Powell’s remarks at the National Association for Business Economics (NABE) conference in Philadelphia. Powell acknowledged that there is “no risk-free path” for monetary policy and that the Fed’s decisions will remain data-dependent. He also warned that the slow pass-through of tariffs could sustain inflation pressures, while the labour market faces growing downside risks—comments that weighed on the dollar and buoyed gold.
Technical Outlook
Gold remains in firm bullish territory despite being deeply overbought on the daily chart. Indicators continue to point sharply upward with no signs of exhaustion, and prices are well above key moving averages, reflecting robust and persistent demand. The 20-day Simple Moving Average (SMA) currently sits near $3,863.90, far below current levels.
On the 4-hour chart, XAU/USD shows potential for further gains. Buyers stepped in near $4,090, while momentum indicators resumed their advance. The Relative Strength Index (RSI) is consolidating around 66, supporting continued bullish momentum.
Support levels: $4,123 | $4,090 | $4,078
Resistance levels: $4,155 | $4,180 | $4,200
Gold’s historic run looks set to continue as investors seek safety amid economic uncertainty and policy indecision—keeping the metal’s unstoppable bullish trend intact for now.
