At the same time global stock markets slumped with fears of growing trade wars.
SEATTLE (Scrap Monster): According to the most recent World Gold Council (WGC) report, gold remained stable last week despite steep drops in global stocks and plummeting bond yields brought on by the Trump administration's surprisingly harsh reciprocal tariffs. Additionally, with gains of 17% so far this year, the yellow metal continued to be a top performer.
The report claims that gold once again demonstrated its resilience in the face of market turbulence. Last week, the price of LBMA gold barely decreased by 0.6%. It is still within its present upward trajectory. The overbought situation has also improved. Fears of intensifying trade disputes caused the world's stock markets to plummet at the same moment.
There are three important supports to keep an eye on this week. A breach below the $3,000/oz mark will allow for additional downside space. The lower bound of gold's current uptrend channel, which is around US$2,970/oz, is the second level to keep an eye on. If the channel's decline is confirmed, the next targets might be $2,945/oz and $2,846/oz. Thirdly, the WGC study stated that if gold remains within its channel, it may consolidate further at its current level before rising to eventually break through its upper band of about $3,100/oz and advance toward the $3,168/oz barrier.
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