Gold Nears a Critical Technical Threshold as Macroeconomic Uncertainties and Geopolitical Tensions Drive Investors to Safer Assets

Meanwhile, the pullback in altcoins has sparked inquiries about when the next crypto market rally might occur.

As macroeconomic uncertainties and geopolitical tensions drive investors toward safer assets, gold is approaching a critical technical threshold. Meanwhile, the pullback in altcoins has sparked inquiries about when the next crypto market rally might occur.

Analyst Michaël van de Poppe highlights the current struggle at crucial gold price levels, suggesting a potential shift in overall risk appetite could unfold with the next move in the metal.

Macro Events Strengthen Gold, Weigh on Risk Assets

Recent events around the world have reinforced the perception of gold as a safe haven. Constant geopolitical tensions, including new US tariff threats and conflicts in the Middle East and Ukraine, have prompted investors to shun risk.

The US Federal Reserve has also adopted a dovish stance, with the markets anticipating a potential September rate cut, further weakening the US Dollar. This has supported gold, which has managed to stay afloat following an initial correction from recent peaks.

Furthermore, gold prices are being supported by the cooling of US inflation data. The lower-than-expected increase in consumer prices in May supported expectations of reduced interest rates, which once again highlighted the attractions of gold as a non-yielding investment.

All these macroeconomic drivers, combined with trade uncertainties, have helped contain downside movements in gold and keep the metal in a favorable position.

Technical Analysis: Gold Consolidates Below Key Resistance, Altcoins Await Direction

From a technical perspective, gold is consolidating just below a major resistance zone around $3,400. As highlighted by Michaël van de Poppe’s latest chart, gold took liquidity above recent highs and is now building for a decisive move.

If the price manages to break above this notional resistance, analysts anticipate another rally, which may propel gold to reach a new all-time high. That scenario would represent a very risk-off type of environment, with investors still prioritizing safety over speculation.

However, if gold fails to hold onto its current support around $3,200, it may face a deeper correction. This range has recently served as a demand zone. A drop below this level would likely reverse the short-term bullish trend, potentially allowing riskier assets to recover.

Until this crucial technical situation clarifies, altcoins will continue to face pressure, with many inquiring about when the next crypto market rally might occur.

Bitcoin’s dominance remains high at 64.1%, suggesting that the altcoin season has yet to fully arrive. Although some altcoins have managed to outperform Bitcoin over the past few weeks, overall liquidity remains limited, mainly due to investors’ caution and central banks’ ongoing fiat liquidity injections.

According to historical trends, major altcoin rallies tend to occur when Bitcoin’s dominance falls below 50%. Risk-on assets such as altcoins continue to face difficulties at this time, as capital continues to flow into traditional safe havens like gold.