Key Points:
- XAUUSD (Gold) dropped to $2,907.83, extending losses from Monday’s high of $2,944.77.
- Stronger US dollar weighed on prices as investors locked in profits while Trump’s shifting tariff policies on Canada, Mexico, and the EU added uncertainty.
- Markets eye key US economic data, including Q4 GDP and PCE inflation report.
- China’s gold imports plunged, signaling weaker demand.
Gold (XAUUSD) declined to $2,907.83 on Thursday, pressured by a stronger US dollar and shifting trade policies. The metal extended its pullback from Monday’s high of $2,944.77, as investors reassessed risks ahead of key US data releases.
Technical Analysis: XAUUSD Struggles Below $2,920
Picture: XAUUSD consolidates near 2907.83, with support at 2888.19 in focus–as seen on the VT Markets app.
XAUUSD dipped 0.25%, closing at 2907.83 after opening at 2915.07. The session recorded a high of 2920.83 and a low of 2904.30, with price action showing consolidation near key levels.
The moving averages (MA 5,10,30) suggest a neutral to slightly bearish momentum as the shorter-term MAs hover around the price. The MACD (12,26,9) histogram remains flat, signaling indecisiveness and low volatility.
Key levels to watch include 2888.19 as support and 2944.77 as resistance. A sustained move above resistance could trigger bullish momentum, while a break below support may invite further selling pressure.
Tariff Uncertainty Keeps Markets on Edge
On Wednesday, President Trump introduced uncertainty over trade tariffs, pushing back Canada and Mexico’s tariff deadline to April 2 from the previously set March 4 date. Meanwhile, he proposed a 25% “reciprocal” tariff on EU cars and goods, further unsettling market sentiment.
Key Economic Data in Focus
Traders are now awaiting key US economic data, including the second estimate of Q4 GDP growth later today and the PCE price index on Friday—the Federal Reserve’s preferred inflation gauge.
Weaker-than-expected data has reinforced expectations for two 25-bps rate cuts this year, with the next one likely in July. However, inflationary risks from tariffs could still impact the Fed’s stance.
Weaker Physical Demand Signals
In the physical gold market, China’s gold imports via Hong Kong fell 44.8% in January, the lowest level since April 2022. Meanwhile, Swiss data showed a 99% year-over-year drop in gold exports to China, signaling softening demand from the world’s largest consumer.
Market Outlook
XAUUSD remains vulnerable to further declines as long as USD strength persists. However, if PCE inflation data supports Fed rate cut bets, gold could find support and rebound.
