The early European session on Wednesday saw a slight increase in the price of gold.
Investors' concerns about the trade war increase safe-haven flows, which raises the price of gold.
Later on Wednesday, investors await Fedspeak and the US January New Home Sales.
After hitting a one-week low in the previous session, the price of gold (XAU/USD) regains some of its lost ground. The yellow metal, a conventional safe-haven asset, is somewhat supported by the ambiguity and persistent concerns about instability surrounding US President Donald Trump's tariff plans.
However, analysts think that Trump's plans for higher tariffs have increased the US Federal Reserve's (Fed) concerns about inflation, which could persuade the Fed to maintain higher interest rates for an extended period of time. As higher interest rates undermine the appeal of non-yielding gold, this could limit the precious metal's upside.
Later on Wednesday, the US New Home Sales for January will be made public. Additionally, Thomas Barkin and Raphael Bostic, two Fed officials, are scheduled to speak on the same day. When the US Personal Consumption Expenditures (PCE)-Price Index for January is released on Friday, everyone will be watching.
As concerns about a trade war continue, the price of gold rises.
Late Tuesday, Trump issued a second Executive Order, directing the US Commerce Department to begin an official "probe" into the copper markets.
According to Reuters, Trump declared late Monday that tariffs on imports from Canada and Mexico were "on time and on schedule" in spite of the nations' attempts to strengthen border security and stop the flow of fentanyl into the US before a deadline of March 4.
According to the Conference Board, US consumer confidence dropped to 98.3 in February from 105.3 in January, the lowest level since August 2021.
In regards to central bank interest rate policy, Richmond Fed President Thomas Barkin stated late Tuesday that he will wait and see until it is evident that inflation is returning to the Fed's 2% target.
According to Bloomberg, Dallas Fed President Lorie Logan said that in the medium run, the Fed should purchase more short-term securities than longer-term ones in order for its portfolio to more rapidly reflect the makeup of Treasury issuance.
Despite short-term consolidation, the price of gold maintains its bullish tone.
The price of gold continues to rise today. The precious metal stays capped in the limited trading range for the foreseeable future. On the daily chart, the price of gold is still above the important 100-day Exponential Moving Average (EMA), maintaining the bullish outlook. Additionally, the path of least resistance is upward, as indicated by the 14-day Relative Strength Index (RSI), which is above the midline at 64.0.
The gold bulls seem to be having a hard time breaking the all-time high of $2,957. A move to the next bullish levels at $2,980, the upper boundary of the Bollinger Band, on the way to the $3,000 psychological level, could be initiated by an upside break from the aforementioned level.
The low of February 25 at $2,888 serves as the yellow metal's first support level in the bearish scenario. Prolonged losses may lead to the Bollinger Band's lower limit of $2,795. The 100-day EMA, or $2,718, is the main level of contention to keep an eye on.
Investors' concerns about the trade war increase safe-haven flows, which raises the price of gold.
Later on Wednesday, investors await Fedspeak and the US January New Home Sales.
After hitting a one-week low in the previous session, the price of gold (XAU/USD) regains some of its lost ground. The yellow metal, a conventional safe-haven asset, is somewhat supported by the ambiguity and persistent concerns about instability surrounding US President Donald Trump's tariff plans.
However, analysts think that Trump's plans for higher tariffs have increased the US Federal Reserve's (Fed) concerns about inflation, which could persuade the Fed to maintain higher interest rates for an extended period of time. As higher interest rates undermine the appeal of non-yielding gold, this could limit the precious metal's upside.
Later on Wednesday, the US New Home Sales for January will be made public. Additionally, Thomas Barkin and Raphael Bostic, two Fed officials, are scheduled to speak on the same day. When the US Personal Consumption Expenditures (PCE)-Price Index for January is released on Friday, everyone will be watching.
As concerns about a trade war continue, the price of gold rises.
Late Tuesday, Trump issued a second Executive Order, directing the US Commerce Department to begin an official "probe" into the copper markets.
According to Reuters, Trump declared late Monday that tariffs on imports from Canada and Mexico were "on time and on schedule" in spite of the nations' attempts to strengthen border security and stop the flow of fentanyl into the US before a deadline of March 4.
According to the Conference Board, US consumer confidence dropped to 98.3 in February from 105.3 in January, the lowest level since August 2021.
In regards to central bank interest rate policy, Richmond Fed President Thomas Barkin stated late Tuesday that he will wait and see until it is evident that inflation is returning to the Fed's 2% target.
According to Bloomberg, Dallas Fed President Lorie Logan said that in the medium run, the Fed should purchase more short-term securities than longer-term ones in order for its portfolio to more rapidly reflect the makeup of Treasury issuance.
Despite short-term consolidation, the price of gold maintains its bullish tone.
The price of gold continues to rise today. The precious metal stays capped in the limited trading range for the foreseeable future. On the daily chart, the price of gold is still above the important 100-day Exponential Moving Average (EMA), maintaining the bullish outlook. Additionally, the path of least resistance is upward, as indicated by the 14-day Relative Strength Index (RSI), which is above the midline at 64.0.
The gold bulls seem to be having a hard time breaking the all-time high of $2,957. A move to the next bullish levels at $2,980, the upper boundary of the Bollinger Band, on the way to the $3,000 psychological level, could be initiated by an upside break from the aforementioned level.
The low of February 25 at $2,888 serves as the yellow metal's first support level in the bearish scenario. Prolonged losses may lead to the Bollinger Band's lower limit of $2,795. The 100-day EMA, or $2,718, is the main level of contention to keep an eye on.
