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Gold Shines Bright: Rally Nears All-Time High Amid Trump’s Trade Tariff Reversal

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  • January 24, 2025
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Gold prices skyrocketed this week as it rose to more than 2.50% on the back of US President Donald Trump’s unexpected comments that he may no longer impose tariffs on China after a phone call with Chinese President Xi Jinping. This shift, combined with plummeting US yields and equities rallying, puts gold back on its path to challenge its all-time high of $2,790, trading at $2,774. Further boosting market sentiment is the Bank of Japan hike in interest rates and anticipation of U.S. economic data releases, including readings for PMI and the Consumer Sentiment Index. $2,800 becomes the analysts’ next major level of resistance while some set the sights for higher levels around $3,000. Some downsides at supports are pegged at $2,721 and $2,709. KEY LOOKOUTS The fact that President Trump’s remarks of skipping tariffs on China have kept boosting gold has positioned the metal on the edge of nearing all-time highs near $2,790. • Declining US yields, triggered by the rate hike by the Bank of Japan and Trump’s comments on Federal Reserve policies, sustain the rally for gold. • Resistance for gold is at $2,790 and $2,800, while the support is at $2,721 and $2,709, which are critical levels for any buying and selling pressures by traders. • Traders await S&P Global PMI and Michigan Consumer Sentiment Index readings, with potential to influence gold prices depending on economic sentiment and market reactions. Gold continues its bullish run, gaining over 2.50% this week, fueled by US President Donald Trump’s surprising remarks suggesting he may avoid imposing tariffs on China after discussions with Chinese President Xi Jinping. This change in trade sentiment, coupled with plummeting US yields after the Bank of Japan’s rate hike, has pushed gold to within touching distance of its all-time high of $2,790, with analysts looking at $2,800 as the next key resistance level. Meanwhile, traders are cautious ahead of significant US economic data releases, including the S&P Global PMI and Michigan Consumer Sentiment Index, which could impact market sentiment and gold’s trajectory. Gold has risen over 2.50% this week, close to its all-time high of $2,790, after US President Donald Trump said he would avoid tariffs on China. Falling US yields and key data releases are also driving momentum. • Gold prices rose over 2.50% this week, approaching the all-time high of $2,790. • US President Donald Trump hinted at avoiding tariffs on China, boosting market optimism and supporting gold’s rally. • Declining US yields, influenced by the Bank of Japan’s rate hike and trade developments, add to gold’s bullish trend. • Gold faces resistance at $2,790 and $2,800, with $3,000 projected as a potential long-term target. • Support levels for gold are noted at $2,721 and $2,709, vital for traders monitoring downside risks. • Upcoming US PMI and Michigan Consumer Sentiment Index readings may sway market sentiment and impact gold’s movement. • Analysts are still positive and believe that gold has room for further upside with the market and economic environment being supportive. Gold prices have gained more than 2.50% this week after US President Donald Trump’s surprise remarks about possibly not levying tariffs on China following his phone call with Chinese President Xi Jinping. This change in trade sentiment has boosted investor confidence in gold as a safe haven, pushing it to within touching distance of its all-time high of $2,790. Falling US Treasury yields, driven by the Bank of Japan’s 25-basis-point rate hike, have also been supportive of gold’s upward momentum. At current prices of $2,774, traders are looking at resistance levels at $2,790 and $2,800, with some analysts projecting a possible climb to $3,000 in the long term. XAU/USD Daily Price Chart Source: TradingView Prepared By ELLYANA Gold also watched critical supports around $2,721 and $2,709, through which the subsequent action will unfold, if pullbacks occur for this precious metal. Other macro economic data slated to be reported will be a release of the S&P Global PMI along with the US’s Consumer Sentiment Index out of the Michigan. These announcements, combined with continued news surrounding Trump’s tariff policies and Federal Reserve expectations, could send gold prices in a big way over the next few days. With a combination of positive technical factors and fundamental drivers, gold seems to be set for further upside. TECHNICAL ANALYSIS XAU/USD remains very bullish as it approaches the all-time high of $2,790, with $2,800 being the next key resistance level. A move above this ceiling may trigger a rally towards $3,000, which analysts are beginning to foresee as well. On the downside, initial support comes in at $2,721, which corresponds to a double top from November and December, below that at $2,709, a deep low from October. A break below either could cause gold to retreat even more significantly to $2,680 levels, indicating a reversal. Momentum gauges, such as RSI, are above overbought levels, thus caution is due for new buyers, though sentiment remains positive due to strong drivers. FORECAST Gold price is expected to continue rising; analysts expect it to break past the all-time high of $2,790. A break past that level would result in $2,800 turning into a strong resistance area. If it breaks this level, a rally towards much-awaited $3,000 would be seen as a springboard. Supporting this bullish sentiment are the conditions of the market: falling US yields, dovish central bank expectations, and ongoing uncertainty about trade policies. Gold remains a first choice among safe-haven assets, and the upward trajectory might strengthen further if more global economic uncertainties or geopolitical tensions arise. Despite its bullish momentum, gold is still susceptible to downside risks. The immediate support levels for it stand at $2,721 and $2,709. A breakdown of these areas may trigger a sharper sell-off, and prices could easily be dragged back to $2,680 or lower. Overbought conditions, as shown by technical indicators such as RSI, also hint at a correction. More than expected US economic data or a hawkish turn in Federal Reserve policies could also undermine the appeal of gold,

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Commodities Gold

Gold Price Rises on Fresh USD Selling: Market Analysis

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  • January 20, 2025
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Gold prices have started the week on a positive note, supported by renewed selling pressure on the US Dollar amid growing expectations of two Federal Reserve interest rate cuts this year. The yellow metal, considered a hedge against inflation and economic uncertainty, finds support around the $2,700 mark, with technical levels indicating potential resistance near $2,715 and $2,724-2,725. On the downside, any dips are likely to attract buyers, with significant support zones at $2,662 and $2,635. Although a strengthening geopolitical sentiment and strong equity market mood might put a lid on gains, the markets are on their toes before important events such as US President-elect Donald Trump’s inaugural speech that might shape inflation expectations and direction of Federal Reserve policy. KEY LOOKOUTS • Markets are expecting two rate cuts from the Federal Reserve this year that may soften the USD and cause gold prices to soar further as an asset that finds safe haven. • Gold is resisting at $2,715 and $2,725; it could rally to $2,745 if oscillators on the daily chart continue to stay bullish. • Strong support is seen between $2,662 and $2,635; any significant decline below these levels may attract a bearish trend, thus cautious investor attention. • Donald Trump’s economic policies and easing tensions in the Middle East are still important factors, which may impact both inflation expectations and safe-haven demand for gold. Prices for gold still seem buoyant, lifted by expectations that there would be two Federal Reserve rate cuts this year, which has weakened the US Dollar and bolstered safe-haven demand. From a technical perspective, the yellow metal faces resistances near $2,715 and $2,725, and it may climb towards $2,745 if bullish momentum continues. Key support levels are likely to attract dip-buyers at $2,662 and $2,635, capping a deeper decline. While geopolitical tensions ease and US President-elect Donald Trump’s proposed policies are likely to have a bearing on inflation and the Federal Reserve’s response, they remain essential in forming the gold market view. A softer US Dollar supports gold prices, with Federal Reserve rate cuts being anticipated. Strong support comes in at $2,662, and $2,715 remains the resistance point. • Speculation about Federal Reserve rate cuts has softened the USD, increasing the appeal of gold as a safe-haven asset. • Gold faces significant resistance at $2,715 and $2,724-2,725, with potential to reach $2,745 if bullish momentum continues. • Dip-buying activity is expected near $2,662 and $2,635, offering a safety net for gold’s price movement. • Daily chart oscillators are seen positive, which might pave the way for potential moves higher, either toward $2,760 or even higher. • Expectation of policies of Donald Trump and creeping inflationary pressures could definitely exert an influence on investors’ outlook in increasing demand for gold. • Easing tensions in the Middle East and a stable equity market are likely to cap the short term gains in gold. • Aiming to challenge its all-time high of $2,790, gold remains a focal point for investors seeking stability amid uncertain global events. Gold prices started the week on a modest note, supported by renewed selling in the US Dollar amid growing expectations of Federal Reserve rate cuts this year. The prospect of lower interest rates has weakened the greenback, making gold a more attractive safe-haven asset for investors. Technically, gold faces resistance near the $2,715 and $2,724 levels, while support zones at $2,662 and $2,635 continue to attract dip-buying activity. Positive momentum in daily chart oscillators suggests the potential for further gains, with the yellow metal eyeing the $2,745 intermediate hurdle and potentially moving towards its all-time high of $2,790. XAU/USD Daily Price Chart. Source: TradingView, Prepared By ELLYANA However, geopolitical and economic factors could influence gold’s trajectory. The easing of tensions in the Middle East and a generally positive tone in equity markets may cap gold’s upside, as investors show less interest in risk-averse assets. Meanwhile, anticipation of US President-elect Donald Trump’s policies and their potential impact on inflation and monetary policy add another layer of uncertainty to the market. These dynamics, allied with key technical levels, place gold’s performance high on the agendas of traders and investors in the coming weeks. TECHNICAL ANALYSIS From a technical analysis viewpoint, gold prices are approaching levels that could go a long way in deciding the near-term trend. The two zones of resistance at $2,715 and $2,724-$2,725 remain crucial. Should these break out, it’s likely to clear the way toward $2,745 and further toward the range of $2,760-$2,762. The daily chart oscillators are still accumulating positive momentum, sustaining the bullish sentiment. On the downside, there is immediate support between $2,700 and $2,690, but a stronger floor around $2,662-$2,635 aligns with a short-term ascending trendline and the 100-day EMA. If these levels fail to hold for an extended period, it would suggest a deeper pullback toward the $2,620-$2,615 confluence zone.  FORECAST Gold prices are poised for further gains as technical indicators maintain a bullish outlook. A sustained break above the $2,715 resistance level could open the door to test the $2,724-$2,725 region, a one-month high. Beyond this, the next upside targets lie at $2,745, with an eventual move toward the $2,760-$2,762 area if positive momentum persists. Strong demand from dip-buyers and even more favorable macroeconomic conditions, for example, if the Federal Reserve is expected to cut rates again, could power the rally higher. In the longer term, gold may well try to make a new high at $2,790 in case geopolitical tensions or inflationary concerns flare again. On the downside, major support lies around $2,700 and then $2,690, and a deeper cushion around $2,662-$2,635. A breakdown of these levels would likely lead to additional selling that would drive the price down toward $2,620-$2,615. Here, several technical factors including a short-term ascending trendline and the 100-day EMA offer good support. More significant corrections for gold could occur in the event of a shift in broader market sentiment or a strengthening US Dollar due to unexpected economic data or Federal Reserve commentary. However, heavy buying

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