Gold hits extreme levels — faces overbought pressure

Spot gold peaked at $2,942.76 early Tuesday ahead of Federal Reserve Chair Jerome Powell’s testimony before Congress.

Powell stated that the Fed is prepared to keep interest rates unchanged as inflation remains elevated and the job market stays strong. Addressing recent policy changes, including Trump’s tariffs, he noted that interest rates are “well positioned to deal with the risks and uncertainties we face.”

Powell will continue his testimony before the House Financial Services Committee tomorrow.

From a technical standpoint, XAU/USD remains bullish, though overbought conditions suggest a potential corrective pullback. On the daily chart, technical indicators remain at extreme levels.