Gold Retreats from Record High Above $4,200
Gold (XAU/USD) recently surged past the $4,200 mark, a first in history, driven by ongoing US government shutdown concerns, strong central bank demand — notably from the Reserve Bank of India — and heightened attention on US–China trade tensions.
On Tuesday, President Donald Trump accused China of “economically hostile” actions, including halting soybean imports, and warned of possible retaliatory measures, according to Trading Economics.
Following an 8% gain since ahead October, indicators such as the RSI suggest the market is overbought, leaving gold vulnerable to a short-term pullback. Today’s sharp decline from record levels (shown by the red arrow) aligns with this view, though bullish pressure remains robust.
Technical overview:
Analysis of price action (highlighted with bold lines) indicates a rising channel that has held since late September. Key bullish signals include:
→ Persistent moves toward the upper boundary of the channel;
→ A steeper incline visible since 10 October;
→ The $4,155 level shifting from resistance to support.
Previous bearish attempts to challenge the market have failed, with short-term drops rapidly reversed by strong recoveries. Today’s pullback could similarly act as a pause before further gains.
Levels to monitor:
→ Psychological resistance at $4,250;
→ Boundaries of the orange rising channel and the blue median line.
In conclusion, the gold market remains strongly bullish, and only extraordinary events are likely to shift this dominant upward trend.
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