GOLD Price Analysis – Feb 21, 2025
Daily Price Outlook
Gold (XAU/USD) retreated from its all-time high of $2,954 reached on Thursday, dropping over 1% to trade around $2,925 at the time of writing on Friday.
Despite this pullback, the precious metal remains well above the $2,930 level, supported by a mix of economic data and geopolitical developments.
Gold came under pressure as economic data from the Eurozone indicated a slowdown in business activity. Reports from S&P Global and Hamburg Commercial Bank (HCOB) showed that the services sector contracted further in February.
France's preliminary Services PMI dropped to 44.5, falling short of the 48.9 estimate. Similar declines were observed in Germany and across the Eurozone, fueling concerns about economic weakness in the region.
Looking ahead, market attention shifts to the US preliminary S&P Global PMI for February, with the services sector expected to tick up slightly to 53.0 from 52.9 in January. Hence, the stronger-than-expected data could further impact gold prices by boosting the US Dollar.
Strong US Dollar and Fed’s Cautious Stance Keep Gold Under Pressure
On the US front, the broad-based US dollar remains strong near 106.50, keeping gold under pressure. The greenback gained support as US jobless claims rose to 219,000, exceeding expectations.
Meanwhile, Federal Reserve officials stayed cautious on inflation, with Governor Adriana Kugler stating that price stability still has "some way to go."
On the other hand, St. Louis Fed President Alberto Musalem warned about stagflation risks, while Atlanta Fed President Raphael Bostic said rate cuts are possible this year, depending on economic data.
The latest FOMC meeting minutes showed the Fed remains cautious, stressing the need for clear signs of lower inflation before cutting rates.
Therefore, the firm US Dollar and cautious Fed stance on inflation limit gold’s upside, as higher jobless claims and stagflation concerns add uncertainty, reducing gold’s appeal amid expectations of delayed rate cuts.
Geopolitical Tensions and Uncertainty Provide Support for Gold
On the geopolitical front, the ongoing trade tension in the global market also played a role in the gold’s movement. The Trump administration signaled possible sanctions relief for Russia in ongoing negotiations over the Ukraine conflict.
Besides, trade tensions resurfaced as President Trump confirmed a 25% tariff on pharmaceutical and semiconductor imports starting in April, alongside existing auto tariffs. These developments have fueled uncertainty in global markets, providing underlying support for gold.
Despite the recent pullback, gold continues to find support from geopolitical risks and ongoing uncertainty surrounding the Federal Reserve’s policy path.
Traders will closely monitor upcoming economic data and central bank commentary for further direction. If US economic indicators show strength, gold may face additional pressure, but lingering inflation concerns and geopolitical uncertainties are likely to keep the metal well-supported above the $2,930 level.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,928.20, up 0.06% for the session, reflecting a cautiously bullish sentiment. The price is holding above the crucial pivot point at $2,916.73, which serves as a key support level, reinforcing the bullish bias.
As long as gold stays above this pivot, the upward trendline remains intact, suggesting further gains are likely.
The first resistance to watch is at $2,955.49, followed by $2,978.00 and the psychological level of $3,001.64. Breaking above these levels could open the door to new highs, driven by continued bullish momentum.
Conversely, if gold falls below the pivot point at $2,916.73, it may face selling pressure, with the first support at $2,892.98. A further decline could target $2,865.06 and $2,833.80, marking significant retracement levels.
The 50-Day Exponential Moving Average (EMA) at $2,916.18 is acting as dynamic support, reinforcing the bullish sentiment.
From a technical perspective, maintaining positions above the pivot point favors buyers, while a break below this level could shift the sentiment to bearish.
The recommended entry point is to buy above $2,917, with a take profit at $2,955 and a stop loss at $2,896 to manage risk effectively.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish Momentum: Gold remains bullish above the pivot point at $2,916.73, targeting $2,955.49 and $2,978.00 as key resistance levels.
- Support Levels: If prices fall below $2,916.73, look for support at $2,892.98 and $2,865.06.
- Strategic Entry Point: Recommended to buy above $2,917, with a take profit at $2,955 and a stop loss at $2,896 to minimize risk.
Gold (XAU/USD) is trading at $2,928.20, up 0.06% for the session, reflecting a cautiously bullish sentiment. The price is holding above the crucial pivot point at $2,916.73, which serves as a key support level, reinforcing the bullish bias.
As long as gold stays above this pivot, the upward trendline remains intact, suggesting further gains are likely.
The first resistance to watch is at $2,955.49, followed by $2,978.00 and the psychological level of $3,001.64. Breaking above these levels could open the door to new highs, driven by continued bullish momentum.
Conversely, if gold falls below the pivot point at $2,916.73, it may face selling pressure, with the first support at $2,892.98. A further decline could target $2,865.06 and $2,833.80, marking significant retracement levels.
The 50-Day Exponential Moving Average (EMA) at $2,916.18 is acting as dynamic support, reinforcing the bullish sentiment.
From a technical perspective, maintaining positions above the pivot point favors buyers, while a break below this level could shift the sentiment to bearish.
The recommended entry point is to buy above $2,917, with a take profit at $2,955 and a stop loss at $2,896 to manage risk effectively.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2917
Take Profit – 2955
Stop Loss – 2896
Risk to Reward – 1: 1.8
Profit & Loss Per Standard Lot = +$3800/ -$2100
Profit & Loss Per Mini Lot = +$380/ -$210
GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish Momentum: Gold remains bullish above $2,934.03, targeting $2,966.23 and $2,983.93.
- Dynamic Support: 50-day EMA at $2,911.04 reinforces buying interest.
- Risk of Pullback: A break below $2,934.03 could trigger short-term selling pressure.
Gold (XAU/USD) is trading at $2,945.47, inching up by 0.02%, as the metal maintains its bullish stance. The price action remains above the key pivot point at $2,934.03, suggesting continued buying interest.
The 50-day Exponential Moving Average (EMA) at $2,911.04 is acting as dynamic support, reinforcing positive sentiment. The market’s attention is focused on the immediate resistance at $2,966.23, with a breakout above this level potentially driving gold towards $2,983.93 and $3,001.64.
Conversely, on the downside, $2,893.87 serves as initial support, with the next safety nets at $2,877.33 and $2,853.75. A break below $2,934.03 could shift momentum, triggering short-term selling pressure. However, the broader uptrend remains intact as long as prices stay above the 50-day EMA.
From a technical perspective, the bullish outlook is supported by the ongoing formation of higher highs and higher lows, in line with the ascending trendline. Traders are eyeing a decisive close above $2,966.23 to confirm continued bullish momentum. Conversely, failure to sustain above $2,934.03 may prompt a corrective pullback.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2934
Take Profit – 2966
Stop Loss – 2914
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$3200/ -$2000
Profit & Loss Per Mini Lot = +$320/ -$200
GOLD Price Analysis – Feb 20, 2025
Daily Price Outlook
Gold price (XAU/USD) prolonged its upward trend and hit an all-time high of $2,954 during the European session on Thursday.
The surge came as investors worried that US President Donald Trump’s trade tariffs could lead to a global trade war, increasing demand for safe-haven assets like gold.
Apart from this, US Treasury bond yields continued to drop, making the US Dollar weaker and further supporting gold prices.
Despite this rally, gold’s gains might slow down as the Federal Reserve’s hawkish meeting minutes confirmed that interest rates will remain high for an extended period.
This could limit new buying activity, especially since gold is already in slightly overbought territory. However, the overall trend remains bullish, and the precious metal is likely to continue its upward momentum in the coming weeks.
Gold Rises as US Dollar Weakens Amid Trade Tensions and Fed Caution
On the US front, the broad-based US Dollar is struggling to stop its losses as US Treasury bond yields take another dip. This weakness in the dollar is helping Gold (XAU/USD) stay strong.
Moreover, US President Donald Trump announced that he will impose heavy tariffs on several products next month or even sooner. This has increased fears of rising trade tensions, pushing investors toward safe-haven assets like gold.
Meanwhile, US Commerce Secretary Howard Lutnick said Trump aims to abolish the Internal Revenue Service (IRS) and shift the tax burden to outsiders.
However, Trump also mentioned that a new trade deal with China is possible, which could ease some concerns.
On the flip side, the Federal Reserve (Fed) minutes from its January meeting revealed that officials are cautious about making any interest rate changes due to uncertainty in the economy.
Fed Vice Chairman Philip Jefferson noted that while inflation has eased, it remains high, and the path to the 2% target may be unpredictable.
Chicago Fed President Austan Goolsbee also stated that inflation is still excessive, and interest rates can only drop once inflation comes down further. Despite these remarks, the US dollar failed to gain strength, keeping gold well-supported.
Looking ahead, traders will keep an eye on Thursday’s US economic data, including weekly jobless claims and the Philly Fed Manufacturing Index. Speeches from key Federal Reserve members could also impact the market.
On Friday, global PMI data will provide fresh insights into economic conditions worldwide, which could influence gold’s next move.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,945.47, inching up by 0.02%, as the metal maintains its bullish stance. The price action remains above the key pivot point at $2,934.03, suggesting continued buying interest.
The 50-day Exponential Moving Average (EMA) at $2,911.04 is acting as dynamic support, reinforcing positive sentiment. The market’s attention is focused on the immediate resistance at $2,966.23, with a breakout above this level potentially driving gold towards $2,983.93 and $3,001.64.
Conversely, on the downside, $2,893.87 serves as initial support, with the next safety nets at $2,877.33 and $2,853.75. A break below $2,934.03 could shift momentum, triggering short-term selling pressure. However, the broader uptrend remains intact as long as prices stay above the 50-day EMA.
From a technical perspective, the bullish outlook is supported by the ongoing formation of higher highs and higher lows, in line with the ascending trendline. Traders are eyeing a decisive close above $2,966.23 to confirm continued bullish momentum. Conversely, failure to sustain above $2,934.03 may prompt a corrective pullback.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish bias holds above $2,912.88, with key resistance at $2,939.98 and a breakout potential toward $2,962.85.
- 50-EMA at $2,902.25 suggests underlying strength, but a drop below $2,893.87 may shift momentum bearish.
- Trading setup: Buy above $2,913, target $2,939, stop loss at $2,893 for risk management.
Gold is trading at $2,933.25, edging up +0.01% as investors assess the next directional move. The metal remains within a well-defined range, with $2,912.88 acting as a pivotal level.
Staying above this level keeps the bullish case intact, with buyers eyeing $2,939.98 as the next hurdle. A breakout above this resistance could pave the way for a move toward $2,962.85, with an extended push targeting $2,985.02.
On the downside, immediate support at $2,893.87 is crucial—if this level gives way, expect increased selling pressure toward $2,877.33, followed by $2,853.75 as a deeper floor.
The 50-EMA at $2,902.25 is catching up to price action, signaling that bulls are maintaining control. However, failure to sustain above the pivot at $2,912.88 could shift momentum in favor of the bears.
From a trade setup perspective, buyers may find an opportunity above $2,913, with a target of $2,939 while keeping a stop loss at $2,893 to manage downside risk.
Gold’s resilience hinges on how it interacts with resistance zones, as a sustained break above could invite fresh buying interest. Conversely, slipping below $2,893.87 may accelerate bearish momentum, pressuring prices lower.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2913
Take Profit – 2939
Stop Loss – 2893
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$2600/ -$2000
Profit & Loss Per Mini Lot = +$260/ -$200
GOLD Price Analysis – Feb 19, 2025
Daily Price Outlook
Gold price (XAU/USD) regained its bullish trend and edged higher around the 2,943 level. The main reason for this upward movement is the market's cautious approach ahead of the FOMC meeting minutes, which could give hints about the Federal Reserve's interest rate plans.
Investors are hesitant, waiting for more clarity on whether the Fed will cut rates, which directly impacts the US Dollar (USD). Hence, the weaker USD generally boosts gold prices since it becomes cheaper for buyers using other currencies.
Meanwhile, expectations of further rate cuts are keeping the USD under pressure, supporting gold’s safe-haven appeal.
Moreover, the ongoing concerns over a potential global trade war sparked by US President Donald Trump's tariff plans are boosting the safe-haven appeal of gold.
However, the absence of strong selling pressure also indicates that gold might continue to rise. As a result, even if gold experiences a temporary pullback, it is likely to be seen as a buying opportunity, keeping prices well-supported.
Gold Gains Strength as US Dollar Weakens Amid Economic Uncertainty
As we mentioned above, gold is rising again, and this is due to the US dollar losing traction in the wake of fresh economic and political developments. The US Dollar Index (DXY), which tracks the USD against six major currencies, has dropped to around 107.00.
At the same time, US Treasury yields stand at 4.29% for the 2-year note and 4.55% for the 10-year note. This decline in the dollar is making gold more attractive to investors, as a weaker USD reduces the cost of gold for international buyers, increasing demand.
Another factor supporting gold’s bullish trend is uncertainty over US interest rates and global trade policies. Federal Reserve officials have given mixed signals about future rate cuts, with some emphasizing the need to keep rates steady due to persistent inflation.
Fed Chair Jerome Powell also noted that the central bank is in no rush to cut rates, especially with strong job growth and solid economic performance.
Meanwhile, US President Donald Trump’s recent tariff threats, including a 25% duty on foreign cars and higher taxes on semiconductor chips and pharmaceuticals, have raised concerns about global trade tensions. This uncertainty is pushing investors toward safe-haven assets like gold.
Besides this, the weak US retail sales data and economic shifts in China are influencing market sentiment. On the data front, the latest report showed that US retail sales fell by 0.9% in January, a sharper decline than expected, signaling slowing consumer spending.
In China, President Xi Jinping held a meeting with top business leaders, including Alibaba co-founder Jack Ma, highlighting Beijing’s renewed focus on supporting private businesses for economic recovery.
GOLD (XAU/USD) – Technical Analysis
Gold is trading at $2,933.25, edging up +0.01% as investors assess the next directional move. The metal remains within a well-defined range, with $2,912.88 acting as a pivotal level.
Staying above this level keeps the bullish case intact, with buyers eyeing $2,939.98 as the next hurdle. A breakout above this resistance could pave the way for a move toward $2,962.85, with an extended push targeting $2,985.02.
On the downside, immediate support at $2,893.87 is crucial—if this level gives way, expect increased selling pressure toward $2,877.33, followed by $2,853.75 as a deeper floor.
The 50-EMA at $2,902.25 is catching up to price action, signaling that bulls are maintaining control. However, failure to sustain above the pivot at $2,912.88 could shift momentum in favor of the bears.
From a trade setup perspective, buyers may find an opportunity above $2,913, with a target of $2,939 while keeping a stop loss at $2,893 to manage downside risk.
Gold’s resilience hinges on how it interacts with resistance zones, as a sustained break above could invite fresh buying interest. Conversely, slipping below $2,893.87 may accelerate bearish momentum, pressuring prices lower.
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GOLD Price Analysis – Feb 18, 2025
Daily Price Outlook
Gold prices (XAU/USD) continue to show strong bullish momentum, trading above the $2,910 level for the second consecutive day.
On Tuesday, the precious metal reached a high of $2,915, attributed to growing fears of a potential global trade war. US President Donald Trump’s threat to impose reciprocal tariffs has sparked a surge in demand for safe-haven assets like gold, pushing its price higher.
Moreover, the ongoing speculation about possible Federal Reserve interest rate cuts in the near future is further enhancing gold's appeal. Although the market faces ongoing uncertainty, gold remains a long-lasting choice for investors seeking stability in volatile times.
US Dollar Recovery Caps Gold Gains Amid Geopolitical Developments and Fed Rate Cut Speculation
On the US front, the broad-based US Dollar has seen a slight recovery, which has capped gold’s price gains, as a stronger dollar diminishes the appeal of gold as a safe-haven asset. However, the dollar’s rebound is attributed to positive geopolitical developments, including the delay in Trump’s tariffs and ongoing diplomatic talks to resolve the Russia-Ukraine conflict.
Although the US Dollar has gained strength, the anticipation of a Fed rate cut remains a significant driver for gold’s recent upward momentum. Traders are increasingly pricing in rate cuts in September or October, especially after the release of mixed US economic data
Geopolitical Tensions and US Tariff Threats Support Gold Prices Above $2,900
On the geopolitical front, global trade tensions, particularly US President Trump's threat to impose tariffs on automobiles starting April 2, continue to support demand for gold as a safe-haven asset. This is part of a larger strategy to impose tariffs on countries that maintain duties on US imports.
Although there is hope that the tariffs may be delayed and peace talks between Russia and Ukraine could ease tensions, the ongoing uncertainty in the geopolitical landscape is keeping gold supported above the $2,900 level.
Traders are keenly watching upcoming economic data, including the Empire State Manufacturing Index, which could provide further insight into the US economy's health. Moreover, speeches from key Federal Open Market Committee (FOMC) members may create new trading opportunities for gold.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,913.89, up 0.04% in the session, maintaining its bullish momentum as the metal hovers above key support levels.
The price remains firmly above the pivot point at $2,905.41, indicating a potential continuation of the uptrend. The 50-day EMA at $2,905.85 is acting as dynamic support, reinforcing buyers' control over the market.
Immediate resistance is seen at $2,935.54, with further upside targets at $2,954.97 and $2,974.92. A break above these levels could fuel a rally toward the psychological $3,000 mark.
Conversely, immediate support stands at $2,887.52, with deeper floors at $2,864.58 and $2,834.27, which could attract buyers in the event of a pullback.
From a technical standpoint, gold's consolidation above $2,905 suggests growing bullish sentiment. The metal remains in an ascending channel, with higher lows indicating sustained demand. However, a break below $2,887 could shift momentum, exposing the asset to further downside.
Given ongoing macroeconomic uncertainties, gold traders should watch for a breakout confirmation above $2,935 to validate the next leg higher. If sellers regain control below $2,887, a retracement toward $2,864 may follow.
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GOLD Price Analysis – Feb 17, 2025
Daily Price Outlook
Gold price (XAU/USD) prolonged its bullish momentum and remained well bid around $2,898 level, reaching an intra-day high of $2,906.
However, the main drivers behind this rally include the ongoing weakness in the US Dollar, uncertainty surrounding US President Donald Trump’s planned tariffs, and disappointing US Retail Sales data. These factors have provided strong support for gold, pushing it above the critical $2,900 mark.
Despite the Federal Reserve's hawkish stance on interest rates, gold remains resilient. However, the market continues to favor gold due to its safe-haven status in an uncertain global economic environment.
In the meantime, ongoing US-Russia negotiations over the Ukraine conflict have not impacted gold’s bullish momentum, further solidifying its strong outlook.
Weaker US Dollar and Inflation Concerns Bolster Gold's Strength
On the US front, the US dollar remains under pressure, hovering near a two-month low around 106.70. This decline comes amid weaker-than-expected US Retail Sales data, which fell by 0.9% in January, far exceeding the anticipated 0.1% decline.
The disappointing economic data, coupled with lower US Treasury yields, has weighed on the dollar, making gold more attractive to investors.
Furthermore, inflation data has reinforced expectations that the Federal Reserve will delay interest rate cuts. Notably, the US Core Producer Price Index (PPI) rose to 3.6% year-over-year in January, surpassing expectations of 3.3%. Similarly, the US Consumer Price Index (CPI) climbed 3.0% annually, with core CPI rising to 3.3%, both exceeding forecasts.
Therefore, this combination of a weaker US dollar and lower Treasury yields, along with stronger inflation data, has made gold more attractive. Investors are turning to gold as a hedge against economic uncertainty, pushing its price higher.
Impact of Trade Uncertainty and Fed's Stance on Gold Prices
Another key factor influencing gold prices is concern over Donald Trump’s proposed trade policies. The former US president has hinted at imposing new tariffs on countries that tax US imports, raising fears of a trade war. These developments have increased market uncertainty, pushing investors toward safe-haven assets like gold.
Federal Reserve Chair Jerome Powell recently reiterated that policymakers are in no rush to lower interest rates, citing strong job growth and economic resilience. Meanwhile, a Reuters poll of economists indicates that the majority expect at least one rate cut by June, though opinions remain divided on the exact timing.
Therefore, the ongoing concerns over Trump's proposed tariffs and ongoing market uncertainty, combined with the Fed's cautious stance on rate cuts, are driving investors toward gold as a safe-haven asset, supporting its price.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is consolidating around $2,900, struggling to gain momentum as it trades near its key pivot point at $2,919.39.
The metal’s short-term price action remains uncertain, with traders eyeing crucial resistance and support levels. A break above $2,935.54 could trigger fresh buying interest, potentially pushing prices toward the next resistance levels at $2,954.97 and $2,970.84.
On the downside, immediate support is seen at $2,853.43. If gold breaches this level, further declines toward $2,834.27 and $2,811.56 may follow. The 50-day EMA at $2,906.38 is acting as dynamic support, keeping gold within a tight range.
The 4-hour chart suggests gold remains in a consolidation phase, with buyers defending the $2,887 level while sellers cap gains near $2,920. The market's next major move hinges on whether gold can break out of this tight range. A buy entry above $2,887 with a target of $2,920 and a stop loss at $2,872 could provide a strategic trade setup.
Gold’s technical outlook remains bullish above $2,887, but failure to hold support could accelerate selling pressure.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance at $2,935.54 – A breakout could push gold toward $2,954.97 and $2,970.84.
- Support at $2,853.43 – A drop below this level may trigger further declines toward $2,834.27.
- Buy above $2,887 – Targeting $2,920 with a stop loss at $2,872 for short-term positioning.
Gold (XAU/USD) is consolidating around $2,900, struggling to gain momentum as it trades near its key pivot point at $2,919.39.
The metal’s short-term price action remains uncertain, with traders eyeing crucial resistance and support levels. A break above $2,935.54 could trigger fresh buying interest, potentially pushing prices toward the next resistance levels at $2,954.97 and $2,970.84.
On the downside, immediate support is seen at $2,853.43. If gold breaches this level, further declines toward $2,834.27 and $2,811.56 may follow. The 50-day EMA at $2,906.38 is acting as dynamic support, keeping gold within a tight range.
The 4-hour chart suggests gold remains in a consolidation phase, with buyers defending the $2,887 level while sellers cap gains near $2,920. The market's next major move hinges on whether gold can break out of this tight range. A buy entry above $2,887 with a target of $2,920 and a stop loss at $2,872 could provide a strategic trade setup.
Gold’s technical outlook remains bullish above $2,887, but failure to hold support could accelerate selling pressure.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2887
Take Profit – 2920
Stop Loss – 2872
Risk to Reward – 1: 2.2
Profit & Loss Per Standard Lot = +$3300/ -$1500
Profit & Loss Per Mini Lot = +$330/ -$150
GOLD Price Analysis – Feb 14, 2025
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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