Gold has risen for the second consecutive day, increasing by $80 to reach $3112. The resurgence of gold purchasers followed a holiday in China and other Asian regions.

Yesterday, gold experienced a notable rise with an outside bullish reversal, which extended today, suggesting a strong upward trend. If current levels hold at market close, it would be the second-highest closing, just $10 below the peak achieved on April 21.

Key Level To Monitor

A key level to monitor is $3500, where gold met resistance on April 22, resulting in a round of profit-taking. This was during a period of optimism concerning U.S. trade negotiations. However, it seems that these talks have recently slowed, with Treasury Secretary Scott Bessent confirming a pause in U.S.-China communications.

Trade negotiations appear stalled, and the market is eager for concrete results rather than just discussions. President Trump addressed frustrations over the timing of trade agreements, stating, “we’re going to put down the price people have to pay to shop in the United States.” He assured that the anticipated figures would be fair without negatively impacting any country.

In line with a rebound in stock markets, Trump’s confidence appears boosted.

What the current movement in gold tells us is clear: investor behaviour continues to be led by tangible geopolitical developments, not hopeful sentiment. The sharp $80 rally across two sessions, reaching $3112, is not noise—it reflects actual adjustments in positioning following days of subdued activity, particularly across Asian markets paused for holiday. It’s not merely a reaction to time away; rather, it suggests strong buying interests were queued up, waiting for the activity to resume.

Momentum And Market Sentiment

The outside bullish reversal seen yesterday carries weight. Historically, these kinds of reversals, especially when followed by immediate gains, suggest that sell-off pressure has exhausted—for now. The fact that gold extended higher today lends conviction to that signal. If prices close where they are now, only $10 below the highest price seen so far this year, it points to a market returning with intent.

Now, $3500 remains a pressure point. It’s not just a round number drawn from sentiment. That’s where sellers stepped in on April 22 when enthusiasm around trade negotiations gave way to short-term exits. What mattered then, and should continue to be watched, is how quickly profit-taking appears once sentiment shifts. Traders seeking upside may watch whether demand can sustain above $3112 first and then notice whether volume builds when approaching that April high.

Comments from Bessent confirmed something we’d already assumed: official communication lines between the U.S. and China are colder than before. This isn’t background noise either. When trade prospects chill, the appeal of safe-haven assets like gold typically gets bolstered—not because investors speculate blindly, but because they want to preserve capital amid ambiguity.

Trump’s positioning seems aimed at reassuring markets—using phrases like “price people have to pay” suggests a focus on domestic affordability while avoiding direct confrontation. It’s a balancing act. Traders might interpret the message not as a sign of aggressive policy change, but rather as a delay, with more waiting likely. And in this environment, any asset that doesn’t rely on policy timing can gain appeal.

With equities also rebounding, confidence looks mildly restored—for now. But what stands out today is not a lift across all risk assets; it’s that gold saw a deliberate continuation higher, not just a tag-along uplift. The second consecutive rise confirms willingness among participants to pay a premium even while risk markets also rise.

From what we see, focus should be directed toward watching whether this momentum remains sustained through the week’s close—and if price action starts to build steadily above recent resistance levels. We’re not just seeing event-driven moves; we’re watching which positions are being held, and which ones are fading quietly.

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