out for a potential bullish reversal in Gold (XAU/USD) as it may break above US$3,305 to target US$3,435–US$3,500, while a drop below US$3,056 could expose deeper support levels near US$2,833.
Analysis
Gold has been the star performer in the first quarter of 2025, outperforming major asset classes like the S&P 500, US Dollar Index, and Bitcoin. After hitting an all-time high of US$3,500, Gold corrected 10% to US$3,120, driven by a stronger US dollar and improved risk sentiment. However, weak US consumer sentiment and rising inflation expectations indicate a potential stagflation threat, supporting demand for Gold as a hedge. Technical analysis shows that the corrective decline found support at the 50-day moving average, with bullish elements emerging. A break above US$3,305 could trigger a bullish reversal, while a drop below US$3,056 may expose deeper support levels. Overall, the recent decline in Gold may have hit an inflection zone, signaling a potential medium-term bullish reversal process.