Daily Price Outlook
Gold price (XAU/USD) maintained its upward trend and hit an all-time high of $2,939. The rally was mainly supported by increased demand for safe-haven assets after US President Donald Trump signed an executive order for reciprocal tariffs on Thursday.
Although the tariffs will take weeks to be implemented, investors are playing it safe and shifting their money into Gold, pushing its price higher.
Another reason for Gold’s strong performance is the weakening US Dollar (USD). The US Dollar Index (DXY) has lost traction as traders realize that Trump's tariffs won’t take effect immediately, leaving room for negotiations.
This uncertainty has reduced the urgency to rush into the Dollar, making Gold a more attractive option for investors looking for stability.
Gold Near Record Highs as US Dollar Struggles and Inflation Concerns Rise
On the US front, the broad-based US Dollar Index (DXY), which measures the strength of the Dollar against other major currencies, is holding steady after losses in the previous session. It remains around the 107.00 level, with US Treasury bond yields for 2-year and 10-year notes standing at 4.31% and 4.53%, respectively.
Inflation figures also came in higher than expected, with both the Producer Price Index (PPI) and Consumer Price Index (CPI) rising more than anticipated. This has led to expectations that the Federal Reserve (Fed) will hold off on cutting interest rates for now.
The Fed's stance on rates remains cautious due to the strong job market and economic growth. In his semi-annual report, Fed Chair Powell mentioned there’s no rush to lower rates, especially with rising inflation pressures.
Trump’s tariffs on several countries could also contribute to higher prices, making it more difficult for the Fed to ease rates anytime soon. This uncertainty about inflation and rate cuts has kept Gold attractive, pushing its price to near record highs.
Gold has been on the rise for three days, recently trading close to its all-time high. With the US dollar struggling and trade tensions increasing due to Trump’s tariff orders, Gold remains a safe-haven investment.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,932.09, up 0.01% as it maintains its bullish momentum amid persistent inflation concerns and ongoing tariff-related market anxiety.
The metal remains supported above its pivot point of $2,923.29, indicating continued investor interest in safe-haven assets.
Technically, gold is trading comfortably above the 50-day EMA, which sits at $2,907.75. This suggests the bullish trend remains intact, with the next immediate resistance at $2,943.27.
A break above this level could propel gold toward $2,959.89 and potentially $2,975.66 if the upward momentum strengthens.
On the downside, immediate support lies at $2,898.08, followed by $2,879.70 and $2,864.94. A dip below the $2,898 level might trigger profit-taking and shift sentiment to the downside.
The Relative Strength Index (RSI) remains near neutral, signaling balanced market sentiment with room for potential upside if buying pressure increases.
Fundamentally, gold continues to benefit from a weaker U.S. dollar and elevated inflation figures, as the latest PPI data showed a 3.5% year-over-year rise, exceeding market expectations.
The Federal Reserve's cautious approach toward rate cuts further supports gold’s appeal, particularly as uncertainty surrounding new tariff measures persists.
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