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🪙 Gold Market Outlook – May 8, 2025
Current Price Snapshot
Spot Gold (XAU/USD): $3,302/oz
Gold is holding firm above key support levels, signaling sustained bullish momentum. The $3,300 level has now been clearly breached and is acting as short-term support. If this level continues to hold, further upside continuation is expected, with a possible target of $3,500.
🧠Technical Outlook
4H Major Support: $3,274.637
1D Floor Support: $3,265.328
1W Pivot Point (PP): $3,265.203
1M Pivot Point (PP): $3,248.445
“A test of the weekly/monthly pivot points is possible but uncertain, as current sentiment favors risk-on for gold, while the USD faces risk-off pressure.”
A pullback to support is possible, but it’s unlikely under the current macro and technical context.
Macro Fundamentals
Gold prices fell earlier today due to optimism surrounding a potential Trump–UK trade deal and easing geopolitical tensions. However, the market remains cautious as US-China officials are scheduled to meet in Switzerland. Meanwhile, China’s central bank approved foreign exchange purchases by commercial banks, further boosting gold imports and supporting physical demand.
“Such measures are likely to keep supporting bullion demand.”
— Han Tan, Exinity Group
Geopolitical Risk Factor
India-Pakistan tensions have escalated, with Pakistan downing 12 Indian drones, which is contributing to increased safe-haven demand in the region.
“Potentially leading to an unquantifiable level of safe-haven demand.”
— Ole Hansen, Saxo Bank
Target: $3,500.
The Support and Resistance outlined in green and red are the respective support/resistance for this pair currently for 1M-1Y timeframes!
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