GOLD Price Analysis – Feb 28, 2025
Daily Price Outlook
Gold price (XAU/USD) prolonged its bearish rally and hit the intra-day low of $2,857 level. However, the losing trend was mainly triggered by the strengthening US dollar, which continued its recovery for the third consecutive day.
The dollar's rise came as traders expected the Federal Reserve (Fed) to maintain its hawkish stance due to persistent inflation.
Despite the bearish momentum, traders remain cautious ahead of the US Personal Consumption Expenditure (PCE) Price Index data.
This report will provide clues about the Fed’s future interest rate decisions, which could impact gold’s next move.
Meanwhile, concerns over former US President Donald Trump's tariff plans and broader economic uncertainty could still support gold as a safe-haven asset.
Gold Slips as Strong US Dollar and Inflation Concerns Weigh on Prices
On the US front, the broad-based US Dollar edged higher mainly due to rising inflation, which strengthens the case for the Federal Reserve to keep interest rates steady.
This move helped the US Dollar recover from a two-month low, weighing on gold prices and pushing them to a two-week low.
On the data front, the latest data from the US Bureau of Economic Analysis showed that the economy grew at a 2.3% annualized pace in the final quarter of 2024, as expected. in the meantime, the GDP Price Index rose by 2.4%, which was higher than the previous estimate of 2.2%, signaling persistent inflation.
These developments, combined with concerns that US President Donald Trump's policies could fuel inflation, are supporting the US Dollar and dragging gold prices lower.
The Federal Reserve is also hesitant to cut interest rates because inflation remains high. This keeps the U.S. Dollar strong, making gold less attractive to investors since it does not offer interest.
Fed officials, including Kansas City Fed President Jeff Schmid and Cleveland Fed President Beth Hammack, have emphasized that controlling inflation is their priority and that rates may stay high for now.
Markets are now focused on the US Personal Consumption Expenditure (PCE) Price Index, which will give new clues about inflation.
Gold Finds Support Amid Rising Trade Tensions and Geopolitical Risks
On the geopolitical front, the losses in gold could be short-lived as rising trade tensions may boost its safe-haven demand. U.S. President Donald Trump announced that his proposed 25% tariffs on Mexican and Canadian goods will take effect on Tuesday, along with an extra 10% duty on Chinese imports.
He justified these measures by citing the ongoing issue of deadly drugs, particularly fentanyl, entering the U.S. from these countries. This decision could escalate trade tensions, potentially disrupting global markets and increasing uncertainty, which often supports gold prices.
Meanwhile, the additional tariffs on China come just as the country prepares for its annual parliamentary meetings, where it will outline its economic plans for 2025. This puts pressure on Beijing to respond quickly with countermeasures.
Trump's tough stance signals growing tensions between the U.S. and its strategic rival, which could lead to further instability in global trade. If China retaliates, it could trigger market volatility, increasing demand for gold as a safe-haven asset.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,864.54, showing a slight uptick of 0.04% but remains under pressure as it hovers below the Pivot Point at $2,868.01. The metal faces significant resistance at $2,889.16, followed by stronger barriers at $2,906.26 and $2,930.44.
These resistance levels align with the 50-day Exponential Moving Average (EMA) at $2,913.75, reinforcing a bearish bias unless gold breaks above this level.
On the downside, immediate support is seen at $2,848.61, with deeper cushions at $2,831.24 and $2,815.11. A break below $2,848.61 could accelerate the bearish trend, pushing prices toward the lower support zones.
Conversely, a sustained move above $2,868.01 could challenge the $2,889.16 resistance level, potentially shifting momentum toward the bulls.
The technical setup indicates a bearish bias as long as gold remains below the 50 EMA and the Pivot Point. The daily chart shows a descending trendline, further confirming selling pressure. Traders should watch for a potential breakdown below $2,848.61, which could trigger a more substantial sell-off.
For now, the recommended strategy is to Sell Below $2,867, with a Take Profit at $2,848 and a Stop Loss at $2,880. Monitoring price action near $2,868.01 will be crucial, as a break above this level could invalidate the bearish outlook.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Momentum: Gold remains bearish below the 50 EMA at $2,913.75 and the Pivot Point at $2,868.01.
- Support Levels: Key supports at $2,848.61, $2,831.24, and $2,815.11.
- Resistance Levels: Immediate resistance at $2,889.16, followed by $2,906.26 and $2,930.44.
Gold (XAU/USD) is trading at $2,864.54, showing a slight uptick of 0.04% but remains under pressure as it hovers below the Pivot Point at $2,868.01. The metal faces significant resistance at $2,889.16, followed by stronger barriers at $2,906.26 and $2,930.44.
These resistance levels align with the 50-day Exponential Moving Average (EMA) at $2,913.75, reinforcing a bearish bias unless gold breaks above this level.
On the downside, immediate support is seen at $2,848.61, with deeper cushions at $2,831.24 and $2,815.11. A break below $2,848.61 could accelerate the bearish trend, pushing prices toward the lower support zones.
Conversely, a sustained move above $2,868.01 could challenge the $2,889.16 resistance level, potentially shifting momentum toward the bulls.
The technical setup indicates a bearish bias as long as gold remains below the 50 EMA and the Pivot Point. The daily chart shows a descending trendline, further confirming selling pressure. Traders should watch for a potential breakdown below $2,848.61, which could trigger a more substantial sell-off.
For now, the recommended strategy is to Sell Below $2,867, with a Take Profit at $2,848 and a Stop Loss at $2,880. Monitoring price action near $2,868.01 will be crucial, as a break above this level could invalidate the bearish outlook.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Sell Below 2867
Take Profit – 2848
Stop Loss – 2880
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$1900/ -$1300
Profit & Loss Per Mini Lot = +$190/ -$130
GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Bias: Gold is bearish below the Pivot Point at $2,905.78 and the 50 EMA at $2,925.55.
- Key Support Levels: Immediate support at $2,877.24, with significant floors at $2,853.42 and $2,834.62.
- Resistance Levels: Upside resistance at $2,924.64, $2,955.49, and $2,980.42.
Gold (XAU/USD) is currently trading at $2,896.48, down 0.03%, as it continues to struggle below the Pivot Point at $2,905.78. The yellow metal is facing selling pressure as it remains under the 50-day Exponential Moving Average (EMA) at $2,925.55, indicating a bearish bias in the short term.
The price action shows resistance at $2,924.64, with stronger barriers at $2,955.49 and $2,980.42. If gold manages to break above $2,905.78, it could trigger a short-term rally towards these resistance levels.
On the downside, immediate support is found at $2,877.24, with more substantial floors at $2,853.42 and $2,834.62. A break below $2,877.24 would reinforce the bearish outlook, likely leading to a test of the next support at $2,853.42.
Should prices continue to fall, the major support at $2,834.62 could act as a crucial level to watch for potential buyers stepping in.
The technical setup suggests a bearish trend as long as gold remains below the 50 EMA at $2,925.55. The 4-hour chart reveals lower highs and lower lows, reinforcing the downward momentum.
The Pivot Point at $2,905.78 is a critical level; a break above this could invalidate the bearish scenario, leading to a potential reversal towards $2,924.64. Conversely, a break below $2,877.24 would solidify the bearish trend, aiming for $2,853.42.
For traders, the strategy remains to Sell Below $2,905 with a Take Profit at $2,877 and a Stop Loss at $2,924. Gold's short-term outlook remains bearish, but traders should be cautious around key levels for any breakout or reversal signals.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Sell Below 2905
Take Profit – 2877
Stop Loss – 2924
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$2800/ -$1900
Profit & Loss Per Mini Lot = +$2800/ -$190
GOLD Price Analysis – Feb 27, 2025
Daily Price Outlook
Gold (XAU/USD) failed to stop its downward trend and remains under selling pressure around the $2,880 mark, its lowest level in over a week.
However, the decline was driven by a stronger US Dollar (USD) and a positive risk tone in global markets, dampening demand for the safe-haven metal.
It should be noted that the global market mood remains upbeat amid the US government's efforts to boost economic efficiency.
Stronger US Dollar Pressures Gold, but Rate Cut Hopes Provide Support
On the US front, the broad-based US dollar has been gaining traction amid modest uptick in US Treasury bond yields. The US Dollar Index (DXY), which tracks the USD against six major currencies, continues to gain traction, extending its gains to near 106.50.
Atlanta Fed President Raphael Bostic stated that current interest rate levels are still putting downward pressure on inflation, suggesting that the Federal Reserve is unlikely to cut rates aggressively. This keeps the US dollar strong, which in turn puts pressure on gold prices.
On the other hand, the ongoing concerns about a slowing US economy could lead the Fed to lower interest rates in the coming months, which limit gold’s downside as lower rates reduce the opportunity cost of holding gold, making it more attractive to investors and providing some support to its price.
The Fed is widely anticipated to lower interest rates in the coming months as concerns over a cooling US economy persist
Strong US Economic Outlook and Trade Policies Weigh on Gold
The global market mood remains upbeat, contributing to gold’s downward trend. Investor confidence has improved due to the US government's efforts to boost economic growth, including discussions on potential tax cuts and measures to enhance economic efficiency. This has strengthened the US dollar and reduced demand for gold as a safe-haven asset.
Further weighing on gold, U.S. officials have reinforced plans to restrict Chinese vehicle imports due to trade competition concerns.
Meanwhile, the White House has directed the Committee on Foreign Investment in the United States (CFIUS) to closely monitor Chinese investments in key sectors. These measures support the USD and risk sentiment, leaving gold vulnerable to further declines.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is currently trading at $2,896.48, down 0.03%, as it continues to struggle below the Pivot Point at $2,905.78. The yellow metal is facing selling pressure as it remains under the 50-day Exponential Moving Average (EMA) at $2,925.55, indicating a bearish bias in the short term.
The price action shows resistance at $2,924.64, with stronger barriers at $2,955.49 and $2,980.42. If gold manages to break above $2,905.78, it could trigger a short-term rally towards these resistance levels.
On the downside, immediate support is found at $2,877.24, with more substantial floors at $2,853.42 and $2,834.62. A break below $2,877.24 would reinforce the bearish outlook, likely leading to a test of the next support at $2,853.42.
Should prices continue to fall, the major support at $2,834.62 could act as a crucial level to watch for potential buyers stepping in.
The technical setup suggests a bearish trend as long as gold remains below the 50 EMA at $2,925.55. The 4-hour chart reveals lower highs and lower lows, reinforcing the downward momentum.
The Pivot Point at $2,905.78 is a critical level; a break above this could invalidate the bearish scenario, leading to a potential reversal towards $2,924.64. Conversely, a break below $2,877.24 would solidify the bearish trend, aiming for $2,853.42.
For traders, the strategy remains to Sell Below $2,905 with a Take Profit at $2,877 and a Stop Loss at $2,924. Gold's short-term outlook remains bearish, but traders should be cautious around key levels for any breakout or reversal signals.
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GOLD Price Analysis – Feb 26, 2025
Daily Price Outlook
Gold price (XAU/USD) climbed to around $2,930 as investors turned to safe-haven assets amid increasing economic uncertainty in the US.
This is because Former President Donald Trump’s push for higher tariffs has raised fears of inflation, driving gold demand. On the flip side, the analysts warn that persistent inflation concerns may force the US Federal Reserve (Fed) to keep interest rates higher, limiting gold's upside.
Traders are closely monitoring key economic data, including the US New Home Sales report for January, which could provide insights into the housing market.
Moreover, the speeches from Fed officials Raphael Bostic and Thomas Barkin could signal future monetary policy shifts. On Friday, the US Personal Consumption Expenditures (PCE) Price Index for January, the Fed’s preferred inflation measure, is expected to influence gold price trends.
US Dollar Weakens Amid Trade Policies, Fed’s Cautious Stance, and Economic Uncertainty
On the US front, the broad-based US dollar faced mild bearish pressure due to evolving trade policies and economic concerns.
Notably, Trump confirmed that tariffs on Canadian and Mexican imports would proceed as planned, despite both countries enhancing border security efforts ahead of the March 4 deadline.
Meanwhile, the weak US consumer confidence data added to the dollar’s woes, with February’s reading dropping from 105.3 to 98.3, marking the steepest decline since August 2021.
Thus, the declining consumer confidence indicates increased economic caution among Americans, further supporting gold’s safe-haven appeal.
On the other hand, the global market sentiment remains sluggish as the Fed maintains a cautious stance on monetary policy.
Richmond Fed President Thomas Barkin highlighted a "wait-and-see" approach, signaling that interest rate cuts are unlikely until inflation is firmly under control.
Whereas, Dallas Fed President Lorie Logan suggested the Fed might shift towards shorter-term securities in its bond-buying strategy, potentially impacting Treasury yields and gold prices.
Hence, the ongoing trade tensions, inflation worries, and economic uncertainties also keeping the gold in demand.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,911.71, down 0.01%, reflecting cautious sentiment as it hovers below the pivot point at $2,925.36. The price is also trading under the 50 EMA at $2,925.93, reinforcing short-term bearish momentum.
If the price remains below this pivot, the next target is immediate support at $2,888.73, with a deeper decline towards $2,864.18. A further drop could test $2,834.62, signaling a continuation of the bearish trend.
On the upside, a break above the pivot at $2,925.36 would shift sentiment to bullish, targeting immediate resistance at $2,955.49.
A stronger breakout could push prices towards $2,980.42, with an extended rally reaching $3,005.91 if buying momentum sustains. However, given the current bearish bias and downward pressure from the 50 EMA, the path of least resistance remains to the downside.
The technical outlook suggests a cautious sell below the pivot of $2,925, with an entry targeting $2,888 and a stop loss at $2,947. This setup offers a favorable risk-reward ratio, aligning with the short-term bearish sentiment.
Traders should watch for volume confirmation and price action around the pivot point to validate the bearish momentum before committing to short positions.
Conversely, if the price breaks above $2,925.36 with significant buying volume, it would invalidate the bearish setup and open the path for a potential bullish reversal.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Below $2,925.36: Holding below the pivot targets $2,888.73 and $2,864.18, signaling continued downward momentum.
- Bullish Above $2,925.36: A breakout above $2,955.49 could push prices towards $2,980.42 and $3,005.91.
- Technical Setup: 50 EMA at $2,925.93 acts as dynamic resistance, reinforcing short-term bearish sentiment.
Gold (XAU/USD) is trading at $2,911.71, down 0.01%, reflecting cautious sentiment as it hovers below the pivot point at $2,925.36. The price is also trading under the 50 EMA at $2,925.93, reinforcing short-term bearish momentum.
If the price remains below this pivot, the next target is immediate support at $2,888.73, with a deeper decline towards $2,864.18. A further drop could test $2,834.62, signaling a continuation of the bearish trend.
On the upside, a break above the pivot at $2,925.36 would shift sentiment to bullish, targeting immediate resistance at $2,955.49.
A stronger breakout could push prices towards $2,980.42, with an extended rally reaching $3,005.91 if buying momentum sustains. However, given the current bearish bias and downward pressure from the 50 EMA, the path of least resistance remains to the downside.
The technical outlook suggests a cautious sell below the pivot of $2,925, with an entry targeting $2,888 and a stop loss at $2,947. This setup offers a favorable risk-reward ratio, aligning with the short-term bearish sentiment.
Traders should watch for volume confirmation and price action around the pivot point to validate the bearish momentum before committing to short positions.
Conversely, if the price breaks above $2,925.36 with significant buying volume, it would invalidate the bearish setup and open the path for a potential bullish reversal.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Sell Below 2925
Take Profit – 2888
Stop Loss – 2947
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$3700/ -$2200
Profit & Loss Per Mini Lot = +$370/ -$220
GOLD Price Analysis – Feb 25, 2025
Daily Price Outlook
Gold price (XAU/USD) extended its downward trend, struggling to gain momentum and hovering around the $2,935 level after hitting an intra-day low of $2,929. The decline is driven by a strengthening US Dollar (USD), which rebounded from its lowest level since December 10.
Although, gold continues to attract demand as a safe-haven asset amid ongoing economic uncertainty, particularly concerns over former President Trump's tariff plans. Furthermore, expectations of further interest rate cuts by the Federal Reserve this year help limit deeper losses in gold prices.
Stronger US Dollar and Mixed Economic Data Weigh on Gold Prices
On the US front, the broad-based US Dollar gained traction as the US Dollar Index (DXY) rebounded near 106.57. However, the greenback strengthened after Federal Reserve Bank of Chicago President Austan Goolsbee stated that the central bank needs more clarity before considering interest rate cuts.
Meanwhile, former President Trump signed a memorandum instructing US authorities to restrict Chinese investments in key sectors, aiming to protect national security while still encouraging foreign investment. These developments boosted the USD, putting pressure on gold prices.
On the data front, the US Composite PMI dropped to 50.4 in February from 52.7, signaling slower economic activity. In the meantime, the Services PMI fell to 49.7, missing expectations, while Manufacturing PMI improved slightly to 51.6.
Moreover, US Initial Jobless Claims rose to 219,000, exceeding forecasts, but Continuing Jobless Claims remained close to expectations. The weaker services sector and rising jobless claims fuel speculation of future Fed rate cuts, which helps limit gold’s losses.
US Sanctions on Iran and Ukraine Peace Hopes Impact Gold Prices
On the geopolitical front, the US imposed new sanctions on over 30 brokers, tanker operators, and shipping companies involved in selling and transporting Iranian oil.
This marks the second round of sanctions as the US aims to cut Iran’s crude exports to zero, preventing the country from developing nuclear weapons. The stricter sanctions add to global economic uncertainty, which often boosts demand for safe-haven assets like gold.
At the same time, investors are closely watching developments in the Ukraine conflict as hopes for a peace deal are rising after French President Emmanuel Macron stated that a truce between Ukraine and Russia could be possible in the coming weeks.
He discussed this with former President Trump at the White House on the third anniversary of Russia’s invasion. If peace talks progress, sanctions on Russia may ease, potentially increasing its oil exports.
GOLD (XAU/USD) – Technical Analysis
Gold prices are showing cautious sentiment, trading at $2,939.55, down 0.02% for the session. The precious metal is currently hovering just above the pivotal level of $2,934.63, a critical threshold that could determine its next move.
Holding above this pivot keeps bullish hopes alive, with immediate resistance at $2,955.49. A break above this level could push prices towards $2,970.91, with the next target at $2,985.30 if bullish momentum sustains.
On the downside, immediate support is at $2,921.42, followed by a more substantial floor at $2,907.22. If bearish pressure intensifies, the next key support level lies at $2,892.63. The 50 EMA sits at $2,938.23, acting as a dynamic support, indicating short-term indecision amidst a broader bullish trend.
The technical outlook suggests a cautious buy above the pivot of $2,934. An entry at this level with a target of $2,955 and a stop loss at $2,925 offers a favorable risk-reward ratio. Traders should watch for volume confirmation and any potential breakout above the resistance to gauge momentum strength.
However, a break below the pivot would shift the sentiment to bearish, likely triggering a move towards the immediate support at $2,921.42.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish Above $2,934.63: Holding above the pivot keeps bullish momentum intact, targeting $2,955.49 and $2,970.91.
- Bearish Below $2,934.63: A break below the pivot may trigger declines toward $2,921.42 and $2,907.22.
- Technical Setup: 50 EMA at $2,938.23 indicates short-term indecision; watch for volume spikes to confirm breakout direction.
Gold prices are showing cautious sentiment, trading at $2,939.55, down 0.02% for the session. The precious metal is currently hovering just above the pivotal level of $2,934.63, a critical threshold that could determine its next move.
Holding above this pivot keeps bullish hopes alive, with immediate resistance at $2,955.49. A break above this level could push prices towards $2,970.91, with the next target at $2,985.30 if bullish momentum sustains.
On the downside, immediate support is at $2,921.42, followed by a more substantial floor at $2,907.22. If bearish pressure intensifies, the next key support level lies at $2,892.63. The 50 EMA sits at $2,938.23, acting as a dynamic support, indicating short-term indecision amidst a broader bullish trend.
The technical outlook suggests a cautious buy above the pivot of $2,934. An entry at this level with a target of $2,955 and a stop loss at $2,925 offers a favorable risk-reward ratio. Traders should watch for volume confirmation and any potential breakout above the resistance to gauge momentum strength.
However, a break below the pivot would shift the sentiment to bearish, likely triggering a move towards the immediate support at $2,921.42.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2934
Take Profit – 2955
Stop Loss – 2925
Risk to Reward – 1: 2.3
Profit & Loss Per Standard Lot = +$2100/ -$900
Profit & Loss Per Mini Lot = +$210/ -$90
GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish Momentum: Gold remains bullish above the pivot point at $2,925.94 and the 50 EMA at $2,920.06.
- Critical Resistance Levels: Watch for a breakout above $2,955.49 to target $2,978.00 and $3,001.64.
- Support Levels: Key support at $2,904.96 and $2,878.08; a break below could signal a bearish shift.
Gold (XAU/USD) is trading at $2,943.72, maintaining a cautiously bullish stance above the pivot point at $2,925.94. This level serves as a critical support zone, reinforcing the upward trend.
If gold manages to break above the immediate resistance at $2,955.49, it could target the next resistance at $2,978.00, with a potential extension to $3,001.64. The bullish sentiment is supported by the price holding above the 50 EMA at $2,920.06, indicating continued buying interest.
Conversely, a break below the pivot point could expose immediate support at $2,904.96, followed by deeper support at $2,878.08 and $2,849.43. The overall technical outlook remains bullish as long as prices stay above $2,925.94 and the 50 EMA.
Traders should watch for a decisive breakout above $2,955.49 to confirm the bullish continuation, while a drop below $2,925.94 may signal a bearish pullback.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2926
Take Profit – 2970
Stop Loss – 2905
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$3900/ -$2100
Profit & Loss Per Mini Lot = +$390/ -$210
GOLD Price Analysis – Feb 24, 2025
Daily Price Outlook
Gold price (XAU/USD) extended its upward rally and hit the intra-day high of $2,944. However, the reason for its upward trend could be linked to uncertainty around US trade tariffs under Donald Trump’s policies, which is making investors cautious about the global economy.
This, combined with a risk-off sentiment in the market, has pushed traders toward safe-haven assets like gold. Apart from this, ongoing geopolitical tensions and a weaker US dollar are further supporting the price of gold.
Despite these bullish factors, gold’s gains remain limited due to expectations that the Federal Reserve (Fed) will keep interest rates high for longer. As a result, traders are holding back from making aggressive moves and are waiting for key US inflation data later this week.
Looking forward, the upcoming release of the US Personal Consumption Expenditures (PCE) Price Index on Friday will be crucial. This report is the Fed’s preferred inflation measure and will provide clearer signals about future interest rate decisions.
If inflation remains high, the Fed may delay rate cuts, which could slow down gold’s rally. On the other hand, weaker inflation data could weaken the US dollar and push gold prices higher in the near term.
Weak US Dollar and Fed Uncertainty Boost Gold’s Safe-Haven Appeal
On the US front, the broad-based US dollar is struggling, with the US Dollar Index (DXY) falling below 106.50. This weakness comes after disappointing US economic data, including higher-than-expected jobless claims and a drop in business activity.
The US Composite PMI slipped to 50.4 in February from 52.7 in January, while the Services PMI fell below expectations, signaling slowing economic momentum.
Meanwhile, jobless claims rose to 219,000, showing signs of a weaker labor market. These factors have put pressure on the USD, making gold more attractive as an alternative investment.
At the same time, the Federal Reserve remains cautious about cutting interest rates. Fed Governor Adriana Kugler stated that inflation is still not close to the 2% target, and St. Louis Fed President Alberto Musalem warned of stagflation risks.
However, Atlanta Fed President Raphael Bostic left the door open for two possible rate cuts this year, depending on economic data. The uncertainty surrounding future rate decisions keeps gold traders on edge, as lower rates would boost gold prices by making the non-yielding metal more appealing.
Apart from this, former President Trump hinted at a new trade deal with China but also mentioned possible 25% tariffs on pharmaceuticals and semiconductors starting in April. These trade tensions and global economic concerns continue to support gold as a safe-haven asset.
Traders are now looking ahead to the US Personal Consumption Expenditures (PCE) Price Index on Friday, which will provide further clues on inflation and the Fed’s next moves, ultimately shaping gold’s direction in the coming days.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,943.72, maintaining a cautiously bullish stance above the pivot point at $2,925.94. This level serves as a critical support zone, reinforcing the upward trend.
If gold manages to break above the immediate resistance at $2,955.49, it could target the next resistance at $2,978.00, with a potential extension to $3,001.64. The bullish sentiment is supported by the price holding above the 50 EMA at $2,920.06, indicating continued buying interest.
Conversely, a break below the pivot point could expose immediate support at $2,904.96, followed by deeper support at $2,878.08 and $2,849.43. The overall technical outlook remains bullish as long as prices stay above $2,925.94 and the 50 EMA.
Traders should watch for a decisive breakout above $2,955.49 to confirm the bullish continuation, while a drop below $2,925.94 may signal a bearish pullback.
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