Forex Trading Tools and Services

Commodities Gold

Gold Records All-Time High as Trump’s Tariffs Rattle World Markets

  • BY
  • February 19, 2025
  • 0 Comments

Gold (XAU/USD) shot up to a new all-time high above $2,945 on Wednesday, extending its upward trend for the third straight day. The bull run was propelled by increased geopolitical tensions after US President Donald Trump re-emphasized his vow to implement 25% tariffs on auto, semiconductor, and drug imports. Naysays regarding US-Russia tensions, combined with market volatility pre-Federal Reserve’s FOMC Minutes report, contributed to the allure of gold as an insurance asset. Technicals present a possible challenge in the neighborhood of $2,951 and $2,966, though any dovish undertones the Fed may carry could further move gold towards psychological $3,000. There is still possible reversal, nonetheless, if sentiment responds to the economic data or Fed policy tilt. KEY LOOKOUTS • The threat of 25% tariffs on automobiles, semiconductors, and drugs inspires market uncertainty and pushes gold to all-time highs. • Federal Reserve January meeting minutes may guide gold’s performance, with speculators looking for clues on next interest rate actions. • Gold is resisted at $2,951 and $2,966, with potential to push further to $3,000 in case of continuous bullish momentum. • Safe-haven demand is boosted by US-Russia tensions and Trump’s hardline on Ukraine, supporting gold prices in the face of worldwide uncertainty. Gold’s record-setting sprint to a new all-time high of over $2,945 shows the market’s responsiveness to economic and geopolitical events. With Trump’s return to tit-for-tat tariffs shaking markets and uncertainty hanging over US-Russia relations, investors are hedging against volatility with gold. At the same time, the Federal Reserve’s next FOMC Minutes release provides further anticipation, as any sign of policy changes could influence market mood. Although gold’s upward trend is still intact, resistance levels around $2,951 and $2,966 may hinder further advances unless a dovish Fed or rising tensions provide further impetus for the rally. Gold rockets above $2,945 on Trump tariff plans and geopolitics. Market direction is now expected from the Fed’s FOMC Minutes. • XAU/USD rockets above $2,945, its third day of advance amidst global uncertainty. • The U.S. President reaffirms 25% tariffs on automobiles, semiconductors, and pharmaceuticals, heightening market fears. • Trump’s aggressive stance on Ukraine and US-Russia relations further contributes to investor uncertainty, supporting gold’s safe-haven status. • Minutes of the Federal Reserve’s January meeting may affect gold’s direction based on signals about interest rate policy. • Gold has strong resistance at $2,951 and $2,966 levels, with possibilities of a run to $3,000. • The 10-year benchmark yield is just shy of 4.56%, affecting the direction of gold as market players determine risk mood. • Koza Altin’s plan to make 40+ tons of gold in five years reflects the industry’s solid demand and prospects for growth. Gold’s rise to an all-time new high is a sign of increasing investor worries on geopolitical tensions and economic policies. The recent gold price boost follows U.S. President Donald Trump reaffirming his decision to impose 25% tariffs on automobile, semiconductor, and pharmaceutical imports. The decision has augmented concerns over trade disruption, and investors are resorting to the safety of gold as a safe-haven instrument. Furthermore, Trump’s tough statements on Ukraine have contributed to the uncertainty in the market, particularly after the initial negotiations between U.S. and Russian leaders failed to defuse tensions. In this context, investors and traders continue to pour into gold as a safe-haven asset against economic turmoil.  XAU/USD Daily Price Chart TradingView Prepared by ELLYANA Beyond geopolitics, market participants are also closely watching the Federal Reserve, as its upcoming FOMC Minutes release could shape future economic policies. While several Fed officials have signaled that interest rates remain at reasonable levels, inflationary concerns persist. Gold’s ongoing strength reflects the broader uncertainty in financial markets, where investors remain cautious about global economic trends. Furthermore, gold demand continues to be strong, with Turkish miner Koza Altin detailing plans to boost production over the next few years. With fears over trade, politics, and monetary policy escalating, gold is still favored as a hedge asset for stability and long-term protection. TECHNICAL ANALYSIS Gold’s move through $2,910 has bolstered bullish sentiment, taking prices to a new all-time high above $2,945. The next important resistance points are at $2,951 and $2,966, with a likely push to the psychological $3,000 if purchasing pressure remains. But in case gold meets with rejection near these levels, a retreat to near-term support at $2,921 could happen, and further weakness might follow at $2,906. The Relative Strength Index (RSI) is indicating conditions of overbuying, implying a possible correction or consolidation in the near term. The next FOMC Minutes release may serve as a pivotal catalyst, deciding whether gold continues its upward move or experiences a short-term retracement. FORECAST Gold’s historic rally above $2,945 has fueled speculation about whether the trend will persist or experience a pullback. If geopolitical tensions rise further, especially with Trump’s belligerent approach to tariffs and Ukraine, gold may experience further upside. Safe-haven demand continues to be robust as investors hedge against economic uncertainty, and any dovish tone by the Federal Reserve in its FOMC Minutes would further push gold towards the psychological $3,000 level. Moreover, ongoing inflation worries and robust central bank purchases across the globe could continue to lend support to gold’s bullishness in the coming days. To the downside, gold is exposed to a near-term correction in case market sentiment changes. The next FOMC Minutes may provide a more sobering interest rate outlook that might dampen gold’s demand. Should the trend in rising bond yields hold, investors will rotate out of gold to move into more attractive-yielding instruments. Lastly, profit-taking at record levels may even cause gold to pull back temporarily, particularly if gold is unable to gain traction above key resistance points. A stronger dollar or positive economic indicators may also weigh on gold, causing possible retracements in the upcoming sessions.

Read More
Commodities Gold

Gold’s Rally Gains Momentum on US-Russia Peace Negotiations and Market Sentiment

  • BY
  • February 18, 2025
  • 0 Comments

Gold maintains its rally for the second day running, reaching over $2,900 as market uncertainty and geopolitical tensions boost demand for the precious metal. The peace negotiations between US and Russian officials in Saudi Arabia have also boosted investor appetite, while Goldman Sachs raised its year-end forecast for gold to $3,100 per ounce. With inflation worries and changing Federal Reserve policy, traders are paying close attention to key resistance points, and a daily close above $2,910 could lay the groundwork for a new all-time high. But technical indicators, including an overbought RSI, point to a potential cooling-off period before additional gains.  KEY LOOKOUTS • Investors are intently following US-Russia peace negotiations in Saudi Arabia since any significant result has the potential to influence considerably the safe-haven status of gold and its price movement. • Remarks from Fed officials like Patrick Harker and Mary Daly can impact sentiment in the markets, especially about interest rate announcements and inflation projections. • A close above $2,910 on a daily basis may signal a bullish break, with bulls targeting $2,921 and the all-time high of $2,942 as important resistance levels. • Trump’s delays and exclusions in trade policy are generating economic uncertainty, reaffirming the position of gold as a value store amid world trade worries. Gold’s pace is strong with traders keeping close tabs on key geopolitical and economic events. US-Russia peace negotiations in Saudi Arabia are the primary point of interest, with any advancement having the ability to shift sentiment in markets. Comments by Federal Reserve officials on inflation and interest rates would also impact gold’s direction, particularly following Patrick Harker’s comments on leaving current rates alone. A close above $2,910 daily would affirm bull strength, with buyers targeting resistance at $2,921 and the all-time high of $2,942. At the same time, uncertainty over US tariff policies continues to fuel demand for gold as a safe-haven asset. Gold’s rally persists as geopolitical tensions and economic uncertainty fuel demand, with traders closely monitoring key resistance levels for a possible all-time high. US-Russia peace talks and Federal Reserve policies continue to be key drivers of market sentiment. • Gold extends rally to $2,910 amid geopolitical tensions, market uncertainty lifting demand for safe-haven precious metal. • Investors keep their eyes on developments in Saudi Arabia, where breakthroughs could revive gold’s appeal as a haven. • Public comments by Fed officials on interest rates and inflation may affect direction of gold, with traders keeping an eye for policy cues. • The gold forecast for the year-end has been raised to $3,100 per ounce by the investment bank, which attributes this to central bank purchases and ETF inflows. • A close above $2,910 on any given day will indicate more bullish momentum, and the major resistance levels are $2,921 and the all-time high at $2,942. • Trade policy delays and exclusions during Trump’s administration are building economic uncertainty, making gold’s appeal as a hedge stronger. • The Relative Strength Index (RSI) is signaling overbought levels, meaning traders can hold off for a dip in price before opening new positions. Gold remains in its bullish trend, breaking above $2,900 as investors clamor for the safe haven amidst geopolitical and economic tensions. US-Russia peace negotiations in Saudi Arabia continue to be a key area of interest, with any advancement having the potential to influence gold as a safe-haven asset. Moreover, Federal Reserve officials such as Patrick Harker and Mary Daly will also appear, giving future interest rate directions. Since the Fed is showing caution regarding inflation, market actors are paying particular attention to looking for signs which can guide the direction of gold. In between, Goldman Sachs has increased the year-end bullion target price to $3,100 an ounce on solid central bank buying and rising flows into bullion-backed ETFs. XAU/USD Daily Price Chart TradingView Prepared by ELLYANA Gold’s rally goes on as it crosses $2,900 on the back of geopolitical tensions and economic uncertainty. Investors are waiting with bated breath for US-Russia peace talks in Saudi Arabia, which may affect gold’s safe-haven demand. In addition, Federal Reserve officials’ future comments on inflation and interest rates might further shape market sentiment. Goldman Sachs’ updated year-end forecast of $3,100 an ounce emphasizes strong central bank demand and ETF inflows underpinning the metal’s bullishness. TECHNICAL ANALYSIS The technical position of gold continues to be bullish, with the price recovering main resistance at $2,910 and positioning the market for increased gains. Closing above this price on the daily chart would support the bullish move, with players targeting the subsequent resistance at $2,921 and the historic high of $2,942. The Relative Strength Index (RSI) is, however, showing signs of overbuying, warning that the market action could get overheated. This implies the possibility of a pullback or consolidation before another breakout. Target levels to monitor are $2,893, which has already held through the Asian session, and $2,881 as the next key downside target. A break below these would initiate a short-term correction, but overall momentum is strong for further upside. FORECAST Gold’s upward momentum persists as it remains above key resistance at $2,910, indicating further potential gains. Should prices close above this mark, the next resistance target would be $2,921, with $2,942 being the all-time high. Breaking above $2,942 would take gold towards Goldman Sachs’ updated year-end target of $3,100 per ounce on the back of robust central bank demand and safe-haven appetite. Moreover, persistent geopolitical tensions, such as the US-Russia peace talks and worldwide trade uncertainties, would lead investors to gold, further supporting its bullish trend. Gold has a potential downside risk even after the strong rally because overbought technical readings are present. The Relative Strength Index (RSI) indicates that the price is reaching dangerous levels of overheating, which may correct or consolidate before another increase. Immediate support is at $2,893, with $2,881 providing further support as buffers against a further drop. If selling pressure continues to build, then gold may fall towards $2,860 or even lower if Federal Reserve officials indicate a less

Read More
Commodities Gold

Gold Price Remains Steady Near $2,900: Market Sentiment, USD Influence, and Prospects Ahead

  • BY
  • February 17, 2025
  • 0 Comments

Gold price (XAU/USD) remains stable near the $2,900 level, buoyed by persistent fears of a global trade war owing to US President Donald Trump’s protectionist tariff measures. Though the precious metal gains from a softer US Dollar in the wake of disappointing retail sales figures, the market remains on guard as the Federal Reserve continues to stick to its hawkish stance. Optimism in US-Russia peace negotiations and positive risk mood have capped gains. Technically, gold’s positive bias holds good, with important resistance levels at $2,925 and an all-time high at $2,943, and key support levels of $2,885 and $2,855. Any solid break below $2,785 would lead to a sharp correction.  KEY LOOKOUTS • Fears over Trump’s possible trade tariffs, such as on autos, may propel safe-haven demand for gold, greatly affecting price action. • The Fed’s aggressive stance and anticipation of extended higher rates can affect gold’s attractiveness, with market now looking towards a possible rate cut in September. • USD movement, as driven by economic releases and Treasury yields, is still a pivotal determinant of gold’s short-term price direction. • Gold is resisted at $2,925 and $2,943, while significant support levels at $2,885 and $2,855 may determine the next market direction. Gold price is still sensitive to various issues, such as US tariff policy, Federal Reserve actions, and the US Dollar strength. Increased fear of Trump’s possible trade tariffs, especially on cars, has supported safe-haven demand for gold. In the meantime, sentiment remains skewed towards a September Fed rate cut over year-end, which is supporting market views. The price action of the US Dollar, fueled by Treasury yields and economic data, is instrumental in setting the near-term gold direction. Technically, resistance around $2,925 and $2,943 could cap advances, with support around $2,885 and $2,855 being the game-changers in stopping a steeper correction. Gold price fluctuates around $2,900, pushed by US tariff worries, Fed actions, and USD fluctuations. Important resistance at $2,925 and support at $2,885 are still pivotal. • Gold price holds steady at the $2,900 level, buoyed by safe-haven buying amid geopolitical and economic risks. • Trump’s proposed tit-for-tat tariffs and possible automobile tariffs stoke fear of a worldwide trade war, making gold more attractive. • The hawkishness of the Fed and anticipation of a rate cut delay influence gold’s short-term price action. • A bearish US Dollar, fueled by poor US Retail Sales figures, has temporarily boosted gold prices. • US-Russia talks, as well as increased tensions in Ukraine, bolster gold’s safe-haven demand. • The resistance is found at $2,925 and $2,943, and the key support areas are at $2,885 and $2,855, dictating price action. • A combination of risk-on mood and tension about inflation impacts gold’s ability to hold gains or correct lower. Gold price continues to be technically resilient, holding on to its bullish foundation around the $2,900 level. The Relative Strength Index (RSI) has cooled off from overbought levels, diminishing the likelihood of an immediate correction while continuing to support additional upside potential. Critical resistance levels to monitor are $2,925, followed by the all-time high around $2,943. A successful breakout above this area could stimulate fresh buying, continuing the uptrend and opening the door to higher levels. Moving averages also show a strong bullish trend, supporting the potential for additional gains if market conditions continue to be favorable. XAU/USD Daily Price Chart TradingView Prepared by ELLYANA On the downside, near-term support is at $2,885, followed by a more robust support area around $2,855 and $2,834. If gold falls below these levels, buyers might come in to support the uptrend, capping losses. Still, a clear-cut breakdown below $2,800 might turn sentiment to bearish side, causing a more extensive correction towards $2,785-$2,784. Participants also need to keep an eye on global economic news, specifically US interest rate expectations and geopolitics, that might fuel volatility and impact gold’s price movements in the near term. TECHNICAL ANALYSIS Gold price continues to be in bullish territory, sustaining itself at the $2,900 level. The Relative Strength Index (RSI) has declined from the overbought territory, indicating scope for further action, with other oscillators remaining in positive favor. Near-term resistance is at $2,925, with the all-time high around $2,943. A convincing breakout above this level would propel fresh buying momentum, extending the current uptrend. Support is seen at $2,885 on the downside, with firm demand likely at $2,855 and $2,834. A break below $2,800 with continued momentum would indicate a deeper correction, and possibly a bearish change in direction. FORECAST Gold price is well-set up for additional gains, with good technical support and safe-haven demand being major drivers. If the price holds above the $2,900 level, an initial drive up towards the $2,925 resistance level is anticipated. A clean breakout above this level can see gold challenge its all-time high of $2,943, and if the momentum continues, it might stretch further to $2,960-$2,975. Events like continued US Dollar weakness, heightened geopolitical tensions, or a dovish turn in the Federal Reserve stance may further accelerate the rally in gold. Gold’s positive outlook notwithstanding, downside risks are present. If the price is rejected at resistance levels and goes below $2,885, it may lead to a pullback to $2,855 and then to $2,834. A breach below the crucial psychological level of $2,800 would mark a change in sentiment, leading to a more significant correction to $2,785 or even $2,750. Improved US economic data, a US Dollar rebound, or decreased geopolitical tensions may cap gold’s upside and mount selling pressure in the short term.

Read More
Commodities Gold

Gold prices surged past $2,900: Trump’s tariffs and global uncertainty fuel safe-haven demand

  • BY
  • February 11, 2025
  • 0 Comments

Gold price (XAU/USD) continues its bullish momentum, breaching the $2,900 mark to hit a fresh all-time high amidst growing safe-haven demand. The surge is driven by US President Donald Trump’s new tariffs on commodities, escalating global trade war concerns, and geopolitical tensions, particularly in the Middle East. Other positives include the prospect of increasing inflation with the pro-protectionist policies of President Trump, thus making gold more attractive as an economic uncertainty hedge. A weak US Dollar bounce and an overbought market have resulted in some intraday profit-taking before Fed Chair Jerome Powell’s congressional testimony. Even though the precious metal experienced some minor pullbacks, the bigger picture is bullish, and strong support is at key technical levels above $2,800, which supports additional upside. KEY LOOKOUTS • Global uncertainty rises with threats of US retaliation and reciprocal tariffs on commodities • Increasing skirmishes, in the Middle East for one, only heighten fears in markets that drive even greater demand for gold as an inflation hedge against volatility • Fed rate policy and future course under inflation concern and a surprising strong labor market. • Despite minor pullbacks, gold’s strong support above $2,800 and bullish trends suggest further upside potential in the coming sessions. Gold’s bullish momentum remains intact as it continues to trade above the $2,900 mark, driven by escalating trade war fears following Trump’s new tariffs and ongoing geopolitical tensions. Investors are turning to the safe-haven metal amid uncertainties surrounding global economic policies and Middle East conflicts. A stronger US Dollar and profit-taking have caused slight pullbacks, but gold’s strong technical support near $2,800 suggests limited downside risks. The market now awaits Fed Chair Jerome Powell’s testimony, which could provide further clarity on the Federal Reserve’s rate stance and influence gold’s next move. Gold price continues to hold strong above $2,900 on the back of Trump’s tariffs and geopolitical tensions, which increase safe-haven demand. Even minor pullbacks are capped by strong support near $2,800. Fed Chair Powell’s testimony may shape gold’s next move. • Gold price surges to a record high as safe-haven demand increases. • New US tariffs on commodities raise the specter of a global trade war, making gold more attractive. • Uncertainties, especially in the Middle East, push investors towards gold as a hedge. • Expectations of inflation because of Trump’s protectionist stance might influence the rate decisions of the Federal Reserve. • A modest recovery in the USD results in some profit-taking in the prices of gold. • Gold is well-supported above $2,800 and is limited in downside risks despite minor corrections. • Investors await Fed Chair Jerome Powell’s comments, which may affect the future course of gold. Gold’s price keeps on its bullish trend, going past the $2,900 mark and reaching a new all-time high as investors seek safety amid rising economic and geopolitical uncertainties. US President Donald Trump’s newly imposed tariffs on commodities, along with his plans for reciprocal duties on other countries, have fueled fears of a global trade war, significantly boosting demand for gold. Furthermore, increased political tensions, especially in the Middle East, have also contributed to gold’s safe-haven status. However, some intraday profit-taking occurred due to a minor US Dollar recovery. Yet, the bullish sentiment remains firm, with technical support levels around $2,800 capping the downside. XAU/USD Daily Chart TradingView Prepared by ELLYANA Looking ahead, market participants are watching the Federal Reserve’s policy stance very closely as Trump’s protectionist policies are likely to drive inflation higher, and this might have an impact on the Fed’s interest rate decisions. A hawkish stance from the central bank would strengthen the US Dollar and cap gold’s gains, while a dovish approach would further support the yellow metal’s rally. Investors are also waiting for Fed Chair Jerome Powell’s congressional testimony, which may give a clue about the Fed’s view on inflation and interest rates. While short-term fluctuations are possible, the broader technical setup suggests that gold is still on an uptrend, and strong demand is likely to keep prices elevated in the near term. TECHNICAL ANALYSIS Gold is still in a strong uptrend, comfortably above the $2,900 level, and with key support around the $2,800 level. Any pullback towards $2,886-$2,882 should attract fresh buying interest, which will reinforce the bullish outlook. A decisive break below this zone may push prices towards the $2,855-$2,852 region, but downside risks are limited because of strong demand. On the flip side, yesterday’s resistance came in near $2,943-$2,950; a next leg higher probably targets the $3,000 mark, but it is reflected in the daily chart – the overbought Relative Strength Index (RSI). The next leg higher might mean some consolidation or short-term correction. Traders will look forward to Fed Chair Jerome Powell’s testimony and the US Dollar’s movement for further directional cues. FORECAST The medium-term bullishness in gold will likely continue for the near term, with price action testing new higher resistance levels. If this buying pressure remains strong, then the next target to the upside would be in the $2,943-$2,950 area, with the psychological $3,000 barrier being a major obstacle before breaking above to start a new rally and take the long-term uptrend much further. Geopolitical tensions, inflation fears, and safe-haven demand will continue to fuel gold prices. The positive view on the yellow metal will continue. But, the price may see some pullbacks because of profit-taking and the US Dollar’s strengthening. If the price falls below $2,900, the initial support is seen around $2,886-$2,882, and the downside risks will extend toward the $2,855-$2,852 zone. Another more aggressive push in correction would push prices closer to the $2,834 level, but that level is expected to attract buyers, thus limiting further declines. Market sentiment will be highly driven by the monetary stance of the Federal Reserve and Jerome Powell’s testimony as any hints of a prolonged rise in higher interest rates would force short-term downward pressure on gold.

Read More
Commodities Gold

Gold Prices Soar to New All-Time Highs as Trade War Jitters, Inflation Loom

  • BY
  • February 10, 2025
  • 0 Comments

Prices of gold (XAU/USD) have maintained their bull run and even reached new all-time highs near the $2,896-$2,897 level as haven demand increases amidst heightened trade war jitters and inflationary pressure. US President Donald Trump declared new 25% tariffs on steel and aluminum imports, in addition to threatened retaliatory measures, which raised uncertainty and have prompted investors to rush to the safe haven. Meanwhile, upbeat US jobs data and persistent inflation worries are expected to keep the Federal Reserve cautious about rate cuts, providing further support to gold prices. Despite modest US Dollar strength and overbought technical conditions, the fundamental backdrop suggests the path of least resistance remains to the upside. Traders now await Fed Chair Jerome Powell’s testimony and key inflation data for further direction. KEY LOOKOUTS • Trump’s new tariffs on steel and aluminum escalate US-China tensions, driving investors toward safe-haven assets like gold amid economic uncertainty. • Rising inflation fears, fueled by protectionist policies, strengthen gold’s appeal as a hedge against price increases despite the Federal Reserve’s cautious stance. • The Fed’s decision on interest rates remains key, as resilient labor market data and inflation trends could impact gold’s bullish momentum. • Gold faces resistance near $2,900, while overbought RSI signals possible consolidation; key support levels to watch are $2,855 and $2,834. Gold prices continue to rally amid escalating trade war fears and inflation concerns, driven by US President Donald Trump’s announcement of new tariffs on steel and aluminum imports. Investors seek refuge in the safe-haven metal as economic uncertainty looms, while inflationary pressures further boost gold’s appeal. Despite the Federal Reserve’s cautious stance, resilient US labor market data and persistent inflation could limit room for further rate cuts, supporting gold’s bullish outlook. However, technical indicators signal overbought conditions, suggesting potential consolidation near the $2,900 resistance level, with key support at $2,855 and $2,834 to watch for potential pullbacks. Gold prices surge to record highs amid escalating trade war fears and inflation concerns, with investors seeking safe-haven assets. While the Federal Reserve’s cautious stance supports gold, overbought technical conditions hint at possible consolidation near the $2,900 resistance level. • XAU/USD reaches a fresh all-time high around the $2,896-$2,897 region amid strong safe-haven demand. • Trump’s new 25% tariffs on steel and aluminum imports escalate US-China tensions, boosting gold’s appeal. • Protectionist policies may reactivate inflation, reinforcing the reasons to hold gold as a hedge against rising prices. • Strong labor market and inflationary worries might prevent the Fed from reducing interest rates, further supporting gold’s bullish outlook. • A slight USD advance might cap the rally in gold, but the fundamental setup is supportive. • Gold is resisted around the $2,900 area, with overbought RSI conditions pointing to consolidation. • Immediate support lies at $2,855 and $2,834, with a further decline targeting the $2,815-$2,800 range. Gold prices continue their upward trajectory, reaching a fresh all-time high around the $2,896-$2,897 region as investors seek refuge in the safe-haven asset amid rising economic uncertainty. US President Donald Trump’s announcement of new 25% tariffs on steel and aluminum imports has intensified fears of a trade war, prompting increased demand for gold. Additionally, concerns over inflationary pressures due to protectionist policies have further strengthened gold’s status as a hedge against rising prices. Meanwhile, the US labor market remains resilient, with a lower-than-expected unemployment rate, which could limit the Federal Reserve’s ability to ease monetary policy. Despite modest US Dollar strength, gold maintains its bullish momentum, signaling strong investor confidence in the metal. XAU/USD Daily Price Chart TradingView Prepared by ELLYANA Gold’s technical outlook remains bullish, but overbought conditions on the daily Relative Strength Index (RSI) suggest a potential short-term consolidation or pullback. The key resistance level stands at $2,900, and a sustained break above this could push prices toward $2,920-$2,930. On the downside, initial support lies at $2,855-$2,854, with stronger buying interest expected around $2,834. If bearish pressure intensifies, the next critical support zone is near $2,815-$2,800. Moving averages indicate continued strength, reinforcing the long-term uptrend, while traders closely watch upcoming economic data and Federal Reserve signals for further price direction. TECHNICAL ANALYSIS Gold (XAU/USD) remains in a strong uptrend, but overbought conditions on the daily Relative Strength Index (RSI) indicate the possibility of short-term consolidation or a minor pullback before further gains. The immediate resistance lies at the psychological $2,900 level, and a sustained breakout above this could push prices toward the $2,920-$2,930 range. On the downside, initial support is seen at $2,855-$2,854, with further key levels at $2,834 and $2,815. If gold breaks below these levels, a deeper retracement toward the $2,800 mark could follow. Moving averages continue to move up, specifically 50-day and 200-day EMAs. Traders would watch the short-term momentum indicators and price action for a breakout confirmation in either direction, given that short-term direction could shift based on upcoming US inflation numbers and signals coming from the Fed. FORECAST The current trend in the gold prices continues to remain uptrended; safe haven, as well as inflation, would continue to sustain the uptrend. The bullish momentum suggests that gold could break above the psychological $2,900 mark, with the next potential target around $2,920-$2,930. If trade tensions between the US and China escalate further or inflation fears intensify, gold may see additional upside, attracting more investors seeking a hedge against economic instability. The Federal Reserve’s stance on interest rates will also play a crucial role in sustaining the bullish momentum. Should the Fed signal a more dovish approach due to persistent economic risks, gold could gain further, testing new record highs in the coming weeks. Despite gold’s strong rally, short-term pullbacks remain a possibility due to overbought technical conditions. The Relative Strength Index (RSI) indicates that gold is approaching an overextended zone, suggesting the potential for a temporary correction. If profit-taking sets in, initial support is expected near the $2,855-$2,854 region, followed by stronger support at $2,834. A deeper retracement could bring the price down to $2,815 or even the $2,800 psychological level, where fresh buying interest

Read More
Commodities Gold

Gold price Struggles near record highs as USD gains, Fed Rate speculations in focus

  • BY
  • February 7, 2025
  • 0 Comments

The gold price XAU/USD has remained at near record levels but failed to make any real momentum as the US Dollar was slightly higher going into the US Nonfarm Payrolls report. Though trade war tensions and a general expectation for a Federal Reserve rate cut should keep the precious metal well supported, caution continues to prevail in bullish traders’ camp. Deteriorating US Treasury yields and persisting economic jitters remain supportive of safe-haven gold. However, the technical indicators provide an overbought reading-a precursor to near-term consolidation before an extended move, after which the key support levels at $2,855 and $2,800 will watch the breach down for further correction. KEY LOOKOUTS • The next NFP report will dictate the market expectations about the Fed’s rate path and, hence, the USD demand and the gold price direction in the near future. • Multiple Fed rate cuts by 2025 are supporting gold, but strong labor market data could alter this scenario. • Increasing geopolitical risks and retaliatory tariffs imposed by China on US goods improve the safe-haven appeal of gold, capping downside risks despite short-term USD strength. • Gold remains near record highs, but RSI signals overbought conditions, with key support at $2,855 and resistance near $2,900 for further momentum. Gold price remains near record highs as investors weigh multiple factors, including the upcoming US Nonfarm Payrolls (NFP) report, Federal Reserve rate cut expectations, and escalating US-China trade tensions. While the weakening US Treasury yields and safe-haven demand support gold, a modest USD uptick ahead of key economic data creates short-term uncertainty. Technical indicators suggest overbought conditions, signaling a potential consolidation before any further uptrend. Key support levels at $2,855 and $2,800 will be crucial in determining the next move, while resistance near $2,900 could challenge bullish momentum in the near term. Gold price lingers around record highs due to Fed rate cut expectations and trade tensions, yet it faces strong resistance from a modest USD uptick. Determinative key levels will be for the next step: $2,855 and $2,900. The technical indicators go even further to suggest short-term consolidation. • Gold refuses to hold its ground off the all-time high for a modest USD uptick. • Market speculations of several Fed rate cuts in 2025 support gold’s bullish view even with positive labor market numbers. • The NFP release will influence USD demand and is likely to push gold in one direction or another. • Growing geopolitical tensions, along with China’s retaliatory tariffs on US goods, will continue to boost gold’s safe-haven status. • Declining bond yields make non-yielding assets, such as gold, more appealing and add more support. • This RSI indication of overbuying could eventually lead to temporary consolidation before entering an extended rise. • Areas of support here are at the levels of $2,855 and $2,800 and resistance is capped near $2,900 for the bulls Gold price in XAU/USD stays almost at all time highs but under pressure due to a slight upside in the USD as investors focus on the NFP from the US. While positive expectations about rate cuts by the Federal Reserve and falling US Treasury yields continue to support the bullish outlook on metal, short-term consolidation seems probable because of technical overbought conditions. Apart from those factors, geopolitical risks, particularly increasing tensions in the US-China trade, continue to fuel safe-haven demand for gold, preventing a more significant downtrend despite some profit-taking. XAU/USD Daily Price Chart TradingView Prepared by ELLYANA The price of gold is trading close to record highs due to the expectations of cuts in the Federal Reserve rate and safe-haven demand amid US-China trade tensions. However, a modest increase in the US Dollar ahead of the Nonfarm Payrolls report has capped the further upside and thus the market sentiment is cautious. The technical indicators are also pointing towards an overbought situation, and a short-term pullback may occur before the next breakout. The important resistance levels are at $2,900 while support at $2,855 and $2,800 will definitely be the make or break situation. Traders are closely observing any significant change in economic data and geopolitical development which will define gold’s price action in the coming days. TECHNICAL ANALYSIS Gold price (XAU/USD) remains in a strong uptrend but faces resistance near the $2,900 level, while key support is seen at $2,855 and $2,800. The Relative Strength Index (RSI) shows that the market is overbought, so the price might enter into short-term consolidation before another breakout. A decisive move above $2,900 will open the way to further growth, while a break below $2,800 will trigger additional selling pressure. Although the moving averages stay aligned in favour of bulls and continue to confirm the overall bullish trend, traders should expect corrections before fresh long positions. FORECAST Gold prices remain in long-term bullish, supported by expected multiple Federal Reserve rate cuts, and declining U.S. Treasury yields. If the NFP data does indicate a weakness in the US labor market, it would bode well for gold, potentially pushing prices beyond the key resistance at $2,900. A sustained move above this would open the path for further rallies towards $2,950 and even $3,000 within the next week or so. Furthermore, growing US-China trade tensions and a general sense of economic uncertainty might keep demand pretty high for the yellow metal since investors are still looking for safety from market volatilities. Despite its strong rally, gold faces short-term downside risks due to overbought technical conditions, with the RSI signaling the possibility of a pullback. If the US Dollar strengthens further or NFP data beats expectations, gold could see a correction toward the $2,855 and $2,800 support levels. A decisive break below $2,800 could trigger additional selling pressure, potentially dragging prices toward $2,750 or lower. However, some fundamentals – such as monetary policy by central banks and political uncertainty – would be unlikely to let gold decline sharply and will keep the gold supported in the long term.

Read More