Daily Price Outlook
Gold price (XAU/USD) extended its strong bullish rally and hit an all-time high of $2,900. However, the main reason behind this surge could be growing uncertainty in global markets after US President Donald Trump announced new trade measures. He stated that he would introduce "reciprocal tariffs" on multiple countries by Tuesday or Wednesday.
Moreover, he mentioned a 25% tariff on all steel and aluminum imports into the US but did not specify the exact timeline. These announcements have fueled concerns about global trade tensions, pushing investors toward safe-haven assets like gold.
Moving ahead, traders are now focusing on Federal Reserve (Fed) Chair Jerome Powell’s upcoming testimony on Tuesday and Wednesday.
Powell is expected to emphasize the strength of the US economy, suggesting that the central bank is in no rush to cut interest rates. This could be a negative factor for gold, as lower interest rates generally boost gold prices by making it more attractive compared to interest-bearing assets.
Gold Remains Strong Amid US Dollar Surge and Market Uncertainty
On the US front, the broad-based US dollar has been gaining strength, with the US Dollar Index (DXY) rising above 108.00. This surge comes after the Federal Reserve (Fed) signaled that it might keep interest rates steady this year. The decision follows January’s jobs report, which showed slower job growth but a lower unemployment rate.
On the data front, US Nonfarm Payrolls (NFP) increased by 143,000 in January, much lower than December’s 307,000, but the unemployment rate dropped slightly to 4%. Higher-than-expected jobless claims also added some uncertainty to the labor market outlook.
Meanwhile, several Fed officials have shared mixed views on the economy. Chicago Fed President Austan Goolsbee warned that inconsistent government policies create uncertainty, making it difficult for the Fed to predict inflation trends.
However, Fed Governor Adriana Kugler noted that the US economy remains strong overall, though inflation progress has been uneven. Minneapolis Fed President Neel Kashkari said he would support rate cuts if inflation continues to improve and the labor market remains solid.
On the flip side, China’s inflation data also grabbed attention. The country’s Consumer Price Index (CPI) rose 0.5% annually in January, higher than December’s 0.1% increase, while producer prices continued to decline.
These developments have added to market uncertainty, keeping gold prices elevated as investors seek safe-haven assets amid global economic concerns.
Therefore, the strong US dollar and steady Fed policy typically pressure gold, but market uncertainty, trade tensions, and China’s inflation data are fueling safe-haven demand. Despite dollar strength, gold remains higher as investors hedge against economic risks and potential future policy shifts.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,878.06, down 0.02%, as it consolidates within a tight range following recent gains.
Despite the minor pullback, the 50-day Exponential Moving Average (EMA) at $2,821.70 continues to act as a dynamic support level, reinforcing the broader bullish structure. The metal remains in an uptrend, with price action favoring further upside if key resistance levels are breached.
The pivot point at $2,870.28 serves as an essential reference level—holding above it keeps bullish momentum intact.
The immediate resistance sits at $2,886.25, with stronger hurdles at $2,900.69 and $2,914.05. A breakout beyond these levels could accelerate gains toward fresh highs, particularly if market sentiment remains risk-averse amid ongoing economic uncertainties.
On the downside, support is firm at $2,849.52, with deeper retracements targeting $2,833.82 and $2,820.54. A sustained drop below these levels would shift momentum in favor of sellers, potentially exposing gold to further declines.
However, given the prevailing demand for safe-haven assets, dips are likely to attract fresh buying interest.
Traders should monitor the $2,872 level, as holding above this threshold could validate a continuation toward $2,890, while a drop below $2,857 may trigger increased selling pressure.
Related News
- GBP/USD Price Analysis – Feb 10, 2025
JOIN LHFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.