Spot gold is undergoing a healthy correction following its recent spike. The minor support pivot sits at $2,968.92, the midpoint between $2,880.25 and $3,057.59. A drop through this pivot may open the door toward the $2,880.25 support zone. A break below this level could expose the 50-day moving average at $2,867.86—considered a major technical level that has underpinned the market since early January. However, given the prevailing bullish sentiment, dips into this region are likely to attract fresh buying interest.
Rate Cut Expectations and Safe-Haven Demand Provide Underlying Support
Investor expectations of rate cuts by the Federal Reserve continue to support the long-term bullish narrative. The Fed held rates steady this week, with projections indicating two 25 basis point cuts by year-end. Additionally, concerns over the upcoming April 2 deadline for new U.S. tariff measures and continued global economic uncertainty are keeping safe-haven flows into gold alive.
While physical demand from India and China remains weak, Exchange Traded Product (ETP) inflows are offsetting that shortfall, providing a steady source of institutional buying.
Gold Prices Forecast: Bullish Trend Intact Despite Short-Term Pullback
Gold’s uptrend remains structurally sound. The retreat from $3,057.59 reflects normal profit-taking rather than a fundamental shift in sentiment. As long as the market holds above the $2,867–$2,880 support zone, bulls are likely to remain in control. The long-term outlook continues to favor higher gold prices, especially with safe-haven demand elevated and monetary policy expectations tilting dovish.
More Information in our Economic Calendar.
