Gold Finds Strong Support

Gold Price Forecast: XAU/USD remains supported above $4,100 in risk aversion

Gold’s reversal from all-time highs near $4,180 found support at $4,090 earlier on Tuesday. The precious metal trimmed losses in risk-off markets amid simmering tensions between the United States and China, returning to the $4,125 area during the European trading session.

Trade tensions revive safe-haven demand

News that the United States and China were rolling out new fees for cargo vessels entering their ports has shattered expectations of a de-escalation of the trade rift between the world’s two major economies. This development provided fresh demand for traditional safe-havens like Gold.

Technical Analysis: Bullish trend intact towards $4,200

• On the 4-hour chart, the RSI has eased from overbought levels, but in the current fundamental context, downside attempts are likely to remain limited.
• Bears were contained at $4,090 (intraday low) on Tuesday. Below this, the previous all-time high at $4,050 (October 8–9 highs) is expected to act as support ahead of the $4,000 psychological level, and the October 7 and 10 lows at $3,940.
• To the upside, the intraday high at $4,080 is the nearest resistance, while the $4,200 round level remains the key target for bulls. Beyond this, a Fibonacci extension highlights the 461.8% extension of the mid-September rally at $4,278.

Summary

Gold remains well supported above $4,100 as risk aversion dominates markets. Renewed trade tensions between the United States and China have reinforced safe-haven flows, keeping the bullish trend intact. Traders are now watching the $4,200 level as the next key milestone, with downside limited by strong supports at $4,090 and $4,050.