The US Dollar licks wounds as ‘Sell America’ theme resurfaces on Trump’s tariff woes.
Gold cracks the critical 61.8% Fibo resistance at $5,142, awaits a daily closing above it.
Gold is adding over 1% early Monday, after having gained 2% on Friday. The bright metal scales key technical hurdles, as buyers stay strong amid renewed tariffs and economic uncertainty alongside looming US-Iran geopolitical tensions.
Gold kicks off the week with a bang as US President Donald Trump’s tariff announcements spark confusion and dent investors’ confidence, fuelling a flight to safety and ‘sell America’ theme once again across the financial markets.
The US Supreme Court on Friday rejected Trump’s emergency tariffs, prompting the President to announce a new 10% rate on the rest of the world, only to then lift it to 15%. The move rekindled market concerns over a highly uncertain and volatile environment, acting as a headwind for the US assets, including the US Dollar .
The US Treasuries were also negatively hit as Trump’s latest tariffs raised the possibility of the US government having to repay around $170 billion in revenue.
Additionally, markets also preferred to flock to the traditional store of value, Gold, amid unimpressive US economic data and nervousness ahead of the Artificial Intelligence pioneer Nvidia’s earnings report this week.
Data showed US economic growth slowed sharply to a 1.4% annualized rate in the Q4, well under the market forecast of 3%, while the Fed’s preferred inflation gauge, the core PCE Price index, rose 3% annually in December, above expectations for a 2.9% increase.
Traders still expect at least 50 basis points of interest rate cuts by the Fed this year, with the first expected in June. Gold thrives on lower rates.
In the week ahead, Gold will continue to rejoice haven demand, with Chinese traders returning from a week-long holiday on Tuesday and reacting to Trump’s tariff news. Meanwhile, geopolitical risks also remain on the rise ahead of the second round of talks between the US and Iran in Geneva on Thursday.
Nvidia earnings on Wednesday and the US PPI data will ramp up the market volatility later this week as tariff headlines remain the central focus.
Daily technical analysis
The 21-day SMA rises above the 50-, 100- and 200-day SMAs, reflecting firm bullish momentum as all gauges trend higher while price holds above them. The 21-day SMA stands at $5,020.15 and offers nearby dynamic support. The Relative Strength Index (14) sits at 59.76 and is edging higher, reinforcing improving upside momentum without reaching overbought.
Measured from the $5,597.89 high to the $4,401.99 low, the Fibo framework shows the 78.6% retracement at $5,341.96 capping the upside. The 61.8% retracement at $5,141.05 has been cleared, and a daily close over that barrier would open room toward the 78.6% Fibo resistance. On pullbacks, the 50-day SMA at $4,723.32 offers a deeper support area.
XAU/USD eyes a daily closing above key 61.8% Fibo resistance
Gold is adding over 1% early Monday, after having gained 2% on Friday. The bright metal scales key technical hurdles, as buyers stay strong amid renewed tariffs and economic uncertainty alongside looming US-Iran geopolitical tensions.
Gold kicks off the week with a bang as US President Donald Trump’s tariff announcements spark confusion and dent investors’ confidence, fuelling a flight to safety and ‘sell America’ theme once again across the financial markets.
The US Supreme Court on Friday rejected Trump’s emergency tariffs, prompting the President to announce a new 10% rate on the rest of the world, only to then lift it to 15%. The move rekindled market concerns over a highly uncertain and volatile environment, acting as a headwind for the US assets, including the US Dollar .
The US Treasuries were also negatively hit as Trump’s latest tariffs raised the possibility of the US government having to repay around $170 billion in revenue.
Additionally, markets also preferred to flock to the traditional store of value, Gold, amid unimpressive US economic data and nervousness ahead of the Artificial Intelligence pioneer Nvidia’s earnings report this week.
Data showed US economic growth slowed sharply to a 1.4% annualized rate in the Q4, well under the market forecast of 3%, while the Fed’s preferred inflation gauge, the core PCE Price index, rose 3% annually in December, above expectations for a 2.9% increase.
Traders still expect at least 50 basis points of interest rate cuts by the Fed this year, with the first expected in June. Gold thrives on lower rates.
In the week ahead, Gold will continue to rejoice haven demand, with Chinese traders returning from a week-long holiday on Tuesday and reacting to Trump’s tariff news. Meanwhile, geopolitical risks also remain on the rise ahead of the second round of talks between the US and Iran in Geneva on Thursday.
Nvidia earnings on Wednesday and the US PPI data will ramp up the market volatility later this week as tariff headlines remain the central focus.
Daily technical analysis
The 21-day SMA rises above the 50-, 100- and 200-day SMAs, reflecting firm bullish momentum as all gauges trend higher while price holds above them. The 21-day SMA stands at $5,020.15 and offers nearby dynamic support. The Relative Strength Index (14) sits at 59.76 and is edging higher, reinforcing improving upside momentum without reaching overbought.
Measured from the $5,597.89 high to the $4,401.99 low, the Fibo framework shows the 78.6% retracement at $5,341.96 capping the upside. The 61.8% retracement at $5,141.05 has been cleared, and a daily close over that barrier would open room toward the 78.6% Fibo resistance. On pullbacks, the 50-day SMA at $4,723.32 offers a deeper support area.
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