Just five days ago, we noted that gold was approaching the $3,000 level and suggested that a breakout could occur this month.

Yesterday, as shown on the XAU/USD chart, the spot price of gold rose above the psychological $3,000 mark for the first time ever. The new all-time high now stands at around $3,045.

Why Is Gold Rising?

Bullish sentiment is being driven by traders positioning themselves ahead of a key event—the Federal Reserve’s interest rate decision, set to be announced today. According to ForexFactory, analysts expect rates to remain unchanged at 4.5%, but surprises cannot be ruled out.

Additionally, gold is becoming more attractive as a safe-haven asset. As reported by Reuters:

→ Tensions in the Middle East are escalating—Israel warns of further casualties, as airstrikes in Gaza have already resulted in over 400 deaths.
→ Gold is gaining amid uncertainty over US tariffs.

Technical Analysis of XAU/USD Chart

In the short term, gold’s price action has formed movements that outline an ascending channel (marked in blue), with key developments including:

→ A breakout (as shown by the arrow) above not only the psychological $3,000 level but also the upper boundary of the channel.
→ A prior consolidation zone formed between $3,000 and $2,980.

It seems the bulls were looking for confirmation and confidence before attempting to break through resistance. The fact that they succeeded suggests this resistance zone may now act as support, making a retest of $3,000 possible.

However, the future direction of gold prices will largely depend on the news backdrop. Brace for volatility—the Fed's interest rate decision will be released today at 21:00 GMT+3, followed by a press conference by Chair Jerome Powell at 21:30 GMT+3.

Start trading commodity CFDs with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.