Gold holds steadily over $ 2,900 as Trump reinstates duty on metals

On By Littum

  • Gold reaches new, as the US 25% Tolls on steel and aluminum -stoke fear of global economic slowdown and inflation.
  • Market mood remains unexpectedly positive, with Wall Street up and the US dollar that strengthens with gold.
  • Upcoming testimony from Fed -Chairman Jerome Powell and central US financial reports to influence Gold’s next move.

The Gold Prize gathered sharply and set a record of over $ 2,900 Monday after the president of the United States (US), Donald Trump, introduced 25% tariff rates on base metals. Dealers seeking security pushed the non-affective metal higher in the midst of fear that Trump commerce policies could derail the global economy and create inflation higher.

The XAU/USD pair is trading for $ 2,905 after hit a highest height of $ 2,911. On Sunday, Trump said that imports of steel and aluminum into the United States are set to be affected by 25% tasks, including revenue from Canada, the United Arab Emirates (UAE) and Mexico. This pushed gold prices higher, with bulls that finally clear the $ 2,900 barrier and set a view of $ 3,000 per day. Troy ounces.

Despite this, the mood of the market remains positive as Wall Street remains in positive territory. Greenback also climbs with gold, while US government bond yields remain stable, which is usually a headwind at the prices of precious metals.

Bullion has also benefited from central bank’s demand. World Gold Council (WGC) revealed that banks bought more than 1,000 tonnes for the third year in a row in 2024. After Trump’s victory, the purchase of central banks grew over 54% yoy to 333 tonnes, calculated WGC.

Despite this, the Federal Reserve (Fed) officials are slightly cautious, which has prevented gold prices from appreciating sharply. Fed -Chairman Jerome Powell’s testimony in the US Congress will be investigated by dealers. Any Hawkish tips could weigh on the yellow metal.

The US economic dock will include bold speakers, inflation figures, employment data and retail sales.

Daily Digest Market Movers: The Gold Price is ready to hit $ 3,000

  • The US 10-year-old Treasury bond yield remains stuck at 4.489%.
  • US real dividends that correlate the reverse with the Bullion prices drops a basic point to 2,055%, a wind to XAU/USD.
  • The New York Fed Consumer expectations survey indicated that US consumers expect inflation to remain in 3% in the short term. In addition, long -term expectations for five years have risen from now, with consumers now expecting prices to rise to 3% in December, from a previous expectation of 2.7%.
  • Last week, US employment data was mixed, although dipped in the unemployment rate suggests the strength of the labor market. This may prevent the fat from cutting the rates soon.
  • Money Market Fed Funds Rate Futures Prices of 39 Basic Points to be eased by Federal Reserve in 2025.

XAU/USD Technical View: Gold Prices are set to challenge $ 2,900

Gold’s UpTrend is set to expand unless a daily is done close to $ 2,900, which can pave the way for a withdrawal. Momentum remains bullish as the relative strength index (RSI) is overbought, although as long as it stays under the most extreme reading of 80, bulls could still push prices higher.

The next resistance would be the psychological figure of $ 2,950, followed by $ 3,000. Conversely, if XAU/USD tumbles below $ 2,900, the first support would be $ 2,850, before October 31 Svinghøj of $ 2,790. Further weakness will be seen at the 27th of January swing of $ 2,730.

Gold frequently asked questions

Gold has played a key role in human history as it has been used extensively as a store with value and exchange medium. Currently, apart from its brilliance and use for jewelry, the precious metal is seen largely as an active port-active, which means it is considered a good investment in turbulent times. Gold is also widely seen as a hedge against inflation and against depreciation of currencies as it does not depend on any specific issuer or government.

Central banks are the largest gold holders. In their goal of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perceived strength of the economy and currency. High gold reserves can be a source of trust in a country’s solvency. Central banks added 1,136 tonnes of gold to a value of about $ 70 billion to their reserves in 2022, according to Data from World Gold Council. This is the highest annual purchase since items began. Central banks from new economies such as China, India and Turkey rapidly increase their gold reserves.

Gold has a reverse correlation with the US dollar and US Treasury, which are both large reserve and secure-port assets. When the dollar is written off, gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inverted correlated with risk assets. A rally in the stock market tends to weaken the gold price, while the sale of risky markets tends to favor precious metal.

The price can move due to a large number of factors. Geopolitical instability or fear of a deep recession can quickly make the gold price escalate due to its safe port status. As a yield asset, gold tends to rise with lower interest rates, while higher costs for money usually weigh down on the yellow metal. Still, most people depend on how the US dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong dollar tends to keep the price of gold -controlled, while a weaker dollar is likely to push the gold prices up.