Key Points:
- Gold stabilises near $2,916, retaining recent session gains.
- Prices supported by ongoing US tariff uncertainties.
- Traders await US CPI data to gauge Fed’s next moves.
Gold Holds Recent Gains Above $2,910
Gold prices stabilised around $2,916.24 per ounce on Wednesday, consolidating gains of roughly 1% made in the previous session. Prices briefly fell to a session low of $2,910.85 before climbing back, reflecting cautious optimism among traders. Persistent uncertainty about US trade policy continues to drive demand for safe-haven assets, boosting gold’s appeal in the short term.
Technical Analysis
Picture: XAUUSD steadies near 2,920 as traders assess market risks and technical resistance, as seen on the VT Markets app.
XAUUSD (Gold) edged slightly higher, closing at 2,916.24 after opening at 2,915.67. The price tested a high of 2,922.14 before pulling back to a session low of 2,910.85, indicating a period of consolidation as traders weigh broader market conditions.
The moving averages (MA 5,10,30) reflect a stabilizing trend, with short-term MAs holding above the longer-term average, supporting a cautious bullish bias. The MACD (12,26,9) histogram shows signs of flattening, suggesting momentum is cooling after recent gains.
Key support is found at 2,880.23, with a break below potentially opening the door for deeper declines. Immediate resistance is at 2,922.14, with further upside possible if bullish momentum strengthens. Market participants will be closely watching macroeconomic developments for directional cues.
US Trade Policies Drive Market Sentiment
Market uncertainty intensified after US President Donald Trump initially threatened to double tariffs on Canadian steel and aluminium to 50%, specifically targeting Ontario. However, Trump later eased these threats, bringing temporary relief to markets. Ontario Premier Doug Ford reciprocated by suspending a planned 25% surcharge on US electricity exports, reducing immediate geopolitical tensions.
Despite easing concerns, the unpredictability of US trade policy remains. Traders are concerned that inconsistent tariff announcements and shifting policies could trigger a US recession, further supporting gold prices.
Additionally, geopolitical risk premiums softened slightly after the US agreed to resume military aid and intelligence cooperation with Ukraine, contingent upon Kyiv accepting a US-proposed 30-day ceasefire with Russia.
Market Outlook
Traders are now focused on upcoming US CPI data, scheduled for release later today. This data will provide insight into future Federal Reserve monetary policy decisions, potentially influencing gold’s direction.
A higher-than-expected CPI figure could increase the likelihood of tighter monetary policy, placing some downward pressure on gold. Conversely, weaker inflation numbers may reinforce gold’s bullish momentum, given expectations of a more cautious Fed stance.
