Gold prices continue to trade above the $2,700 mark, closing at $2,706.69, following an intraday high of $2,713.76. The market remains cautious ahead of expected policy changes from the Trump administration, with investors seeking gold as a hedge against inflation and trade-related volatility.
The recent dip to $2,689.39, followed by a swift recovery, highlights the underlying demand for the precious metal as geopolitical and economic uncertainties mount. Pepperstone research strategist Ahmad Assiri noted that Trump’s upcoming executive orders could set the tone for gold’s trajectory in the coming weeks, with risks skewed to the upside.
Gold has gained 3% year-to-date, supported by rising concerns over inflation and trade tensions. Analysts suggest that if the Trump administration enacts tariffs disrupting global trade flows, economic volatility could rise, further strengthening gold’s role as a safe-haven asset.
Meanwhile, a recent call between Trump and China’s Xi Jinping has temporarily eased risk premiums in Asian markets, but the broader potential for a trade war remains a significant factor underpinning gold demand.
The MACD indicator in the chart shows signs of bullish momentum building after a period of consolidation. The recent price action suggests that gold remains supported above $2,700, with key resistance near $2,713, and further upside potential if prices breach this level.
Picture: XAUUSD faces resistance near 2710.00, with bullish MACD momentum as seen on the VT Markets app.
Gold is navigating a pivotal range, with support at $2,689 and resistance at $2,713, while a breakout could push prices toward $2,724 or even $2,750.
Trade tensions and upcoming inflation data are likely to drive short-term volatility, offering upside potential if resistance is breached.
Gold’s risks remain skewed to the upside as markets prepare for potential disruptions under Trump’s administration. While prices are consolidating above key support levels, traders are closely watching for further policy developments that could drive gold toward new highs.
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