Gold opened today’s trading with clear bullish bias after the strong decline that occurred in the previous session, supported by Stochastic Oscillator which provides positive signals, as the indicator rebounded from oversold territory on the 4-hour chart. Currently, the price is trading near the SMA 9, where stabilize above it would help prices resume their bullish trend on the short term.

Meanwhile, gold is trading above the weekly pivot point at $2895, eyeing a retest to the breached bullish trendline to resume its key upward direction. If the price stabilizes above the aforesaid trendline, it will rise towards $2930. If the price surpasses this level, it may scale a new historical peak at $2977.

On the flip side, if gold fails to remain above the broken bullish trendline, it may push the price downwards to the weekly pivot point at $2895. A sustained move below this level may drive the price to support levels $2847 then $2812.Top of Form

The main event that will probably influence gold this week is U.S. President Donald Trump’s speech, which may reveal new details about U.S. trade policy, particularly regarding tariffs. Trump may also tackle important issues such as the development of ceasefire talks in Ukraine.

Additionally, the minutes from the Federal Open Market Committee (FOMC) meeting will provide insights into future monetary policy, particularly regarding interest rates. Gold could rise if there are hints of a rate cut, while any indication of rate hikes or stable rates would negatively impact gold.

On the data front, the services and manufacturing PMI figures will be out from major economies throughout the week. Any disappointing PMI data, especially from the U.S., could boost gold’s appeal as a safe-haven asset. Oppositely, an improvement in these major sectors could signal economic strength, which could have a negative effect on gold.