Gold slips but stays resilient above $5,140 support

Gold is consolidating after climbing to a monthly peak of $5,250 during Tuesday’s Asian session. The U.S. dollar is attracting renewed demand as liquidity improves and risk appetite stabilizes, even as uncertainty surrounding U.S. tariffs persists.

Despite the pullback, bullion is holding above the 61.8% Fibonacci retracement level at $5,142, which is now acting as key support. Meanwhile, the daily Relative Strength Index (RSI) continues to signal bullish momentum, suggesting the broader uptrend remains intact for now.

XAU/USD Technical Overview

The 21-day Simple Moving Average has climbed above the 50-, 100-, and 200-day averages, and all four are trending higher, highlighting a solid bullish outlook. Price action remains above these key indicators, with the 21-day SMA at $5,029.61 acting as immediate dynamic support. Meanwhile, the 14-day RSI stands at 59.50, slightly above the midpoint, signaling sustained upside momentum.

From the swing high at $5,597.89 down to the low at $4,401.99, the market is consolidating between the 61.8% Fibonacci retracement level at $5,141.05 and the 78.6% level at $5,341.96, which is currently limiting further advances. A decisive daily close above the 78.6% retracement would pave the way for a retest of the previous high, whereas failure to break higher could trigger a decline toward the 50-day SMA at $4,742.30. As long as prices stay above the short-term moving averages, the near-term bias supports continued movement within the retracement range before a clearer breakout emerges.

Fundamental Overview

As trading resumed in China and Japan, liquidity returned to the markets, helping the US Dollar (USD) stabilize after recent pressure.

Investors had previously leaned into “sell America” positions following tariff-related confusion triggered by US President Donald Trump over the weekend, which dented overall market confidence.

Wall Street’s slide continued on Monday amid persistent uncertainty surrounding Trump’s tariff agenda, escalating geopolitical tensions, and caution ahead of AI heavyweight Nvidia’s earnings release on Wednesday.

Gold ended its four-session rally as the USD staged a modest rebound, with prices retreating from monthly peaks to test key support near $5,142.

Market participants remain highly sensitive to tariff developments, particularly after The Wall Street Journal reported early Tuesday that the Trump administration is considering fresh national security tariffs on several industries. The report followed a recent Supreme Court ruling that struck down a number of second-term levies.

At the same time, geopolitical concerns persist, with tensions between the United States and Iran continuing to simmer.

Ongoing expectations that the Federal Reserve will deliver at least two interest rate cuts this year should help limit deeper losses in Gold, which remains a traditional safe-haven asset.

Further underpinning prices, investment demand from India has stayed resilient despite record-high levels, according to Money Metals Exchange.