XAU/USD re-attempts $5,200 amid tariffs and geopolitical woes
Gold buyers are back in the game early Wednesday after seeing a correction from monthly highs on Tuesday.
The US Dollar slips after Trump’s SOTU fails to impress and as AI-driven worries ease. Dovish Fed bets also weigh.
Gold looks north so long as the key 61.8% Fibo resistance at $5,142 holds on the daily chart.
Gold is gathering pace to regain the $5,200 level early Wednesday, as buyers fight back control amid a broadly weaker US Dollar and looming trade and geopolitical risks.
Gold is staging a modest comeback in Asian trading this Wednesday, helped by a broad-based US Dollar retreat. The Greenback corrects from near monthly highs against its major currency peers amid persistent dovish bets surrounding the US Fed and a risk-on market environment, following President Trump’s State of the Union speech.
Trump delivered his first SOTU of the second term before a joint session of Congress, addressing tariffs and Iran nuclear concerns. His comments kept the USD under pressure, while allowing Gold to resume its recent uptrend.
Trump accused Iran of advancing missile capabilities, while on tariffs, the President said the US Supreme Court ruling on tariffs was ‘unfortunate’.
Meanwhile, Asian stocks are on the rise, following their Wall Street counterparts, as investors took to profit-taking ahead of the fourth-quarter earnings report from the leading global chipmaker Nvidia Corp due after-market hours on Wednesday.
On the geopolitical spectrum, traders remain wary and prefer to hold the traditional store of value, Gold, heading into more US-Iran nuclear talks in Geneva scheduled for Thursday.
That being said, Gold will likely remain underpinned in the sessions ahead, with eyes on speeches from Fed officials and broader market sentiment following Nvidia earnings.
Daily technical analysis
The near-term bias is mildly bullish as price holds above the 21-day and 50-day SMAs, while the 100- and 200-day SMAs extend higher and confirm a broader uptrend. The latest RSI reading around 59 stays above the neutral 50 line, pointing to sustained, but not stretched, upside momentum after the recent consolidation off the highs.
Immediate support emerges near the 50.0% Fibonacci retracement of the latest upswing, measured from $4,401.99 to $5,597.89, at $4,999.94, reinforced by the rising 21-day SMA just above $5,020. A break below this area would expose the 38.2% retracement at $4,858.82 as the next downside level. On the upside, initial resistance aligns with the 61.8% retracement at $5,141.05, with a daily close above it opening the path toward the $5,340 zone, where the 78.6% retracement at $5,341.96 caps the next bullish objective.
XAU/USD re-attempts $5,200 amid tariffs and geopolitical woes
Gold is gathering pace to regain the $5,200 level early Wednesday, as buyers fight back control amid a broadly weaker US Dollar and looming trade and geopolitical risks.
Gold is staging a modest comeback in Asian trading this Wednesday, helped by a broad-based US Dollar retreat. The Greenback corrects from near monthly highs against its major currency peers amid persistent dovish bets surrounding the US Fed and a risk-on market environment, following President Trump’s State of the Union speech.
Trump delivered his first SOTU of the second term before a joint session of Congress, addressing tariffs and Iran nuclear concerns. His comments kept the USD under pressure, while allowing Gold to resume its recent uptrend.
Trump accused Iran of advancing missile capabilities, while on tariffs, the President said the US Supreme Court ruling on tariffs was ‘unfortunate’.
Meanwhile, Asian stocks are on the rise, following their Wall Street counterparts, as investors took to profit-taking ahead of the fourth-quarter earnings report from the leading global chipmaker Nvidia Corp due after-market hours on Wednesday.
On the geopolitical spectrum, traders remain wary and prefer to hold the traditional store of value, Gold, heading into more US-Iran nuclear talks in Geneva scheduled for Thursday.
That being said, Gold will likely remain underpinned in the sessions ahead, with eyes on speeches from Fed officials and broader market sentiment following Nvidia earnings.
Daily technical analysis
The near-term bias is mildly bullish as price holds above the 21-day and 50-day SMAs, while the 100- and 200-day SMAs extend higher and confirm a broader uptrend. The latest RSI reading around 59 stays above the neutral 50 line, pointing to sustained, but not stretched, upside momentum after the recent consolidation off the highs.
Immediate support emerges near the 50.0% Fibonacci retracement of the latest upswing, measured from $4,401.99 to $5,597.89, at $4,999.94, reinforced by the rising 21-day SMA just above $5,020. A break below this area would expose the 38.2% retracement at $4,858.82 as the next downside level. On the upside, initial resistance aligns with the 61.8% retracement at $5,141.05, with a daily close above it opening the path toward the $5,340 zone, where the 78.6% retracement at $5,341.96 caps the next bullish objective.
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