- The price of gold continues to attract safe refuge flows amid renewed commercial war fears between the US and China.
- The feat expectations of the Fed weakens the USD and provide more support for the Xau/USD torque.
- A slightly overcompared RSI in the daily chart justifies some caution for upward operators.
The price of gold (Xau/USD) continues to rise during the Asian session on Wednesday and advances to a new historical maximum, around the region of 2,858 $ in the last hour. The concerns about the economic repercussions of the commercial tariffs of the president of the US, Donald Trump, continue to support the demand of the shelter. In addition, the expectations that the Federal Reserve (FED) maintain its relaxation cycle, reinforced by slowdown signals in the US labor market, contribute to boost flows to yellow metal without performance.
Meanwhile, the US dollar (USD) weakens near the weekly minimum before the prospects for a greater relaxation of politics by the Fed and turns out to be another factor that provides additional support to gold prices. That said, Trump’s decision to delay tariffs against Canada and Mexico continues to support the appetite for risk, which could limit the earnings of the Xau/USD in the midst of slightly overcompricated conditions in the daily graphic. This makes a short -term consolidation or a modest setback before positioning itself for an extension of the recent upward trajectory. The operators now expect the US ADP report on employment in the private sector and the US ISM services PMI to obtain some impulse.
Gold price bulls maintain control in the midst of commercial tensions between the US and China, despite the positive tone of the risk
- China responded to the new tariffs of the president of the US, Donald Trump, and imposed selective tariffs on US imports, feeding the fears of a commercial war between the two largest economies in the world and raising the price of safe refuge gold to a new record on Wednesday.
- The Employment and Labor Rotation (Jolts) report published by the US Labor Statistics Office on Tuesday showed that the number of employment vacancies on the last business day of December was 7.6 million, below the Previous 8.09 million.
- The data indicated a slowdown in the labor market, which could allow the Federal Reserve to further cut the rates. This keeps the US dollar bundles on the defensive near the weekly minimum and turns out to be another factor that benefits the Xau/USD torque.
- Trump offered concessions to Canada and Mexico by delaying commercial tariffs of 25% for 30 days, feeding the hopes that a global commercial war can be avoided, although recently to reduce the upward feeling around the precious metal of safe refuge.
- The US economic agenda on Wednesday includes the publication of the ADP report on employment in the private sector and the ISM services PMI. The data should influence the USD and generate short -term trading opportunities around the raw material.
- However, the focus will continue on the monthly details of US employment, popularly known as the Non -Agricultural Payroll (NFP) report on Friday. In addition to this, the headlines on tariffs should infuse volatility in the markets.
The price of gold needs to consolidate its recent profits in the midst of overcompra conditions in the daily chart
From a technical perspective, the relative force index (RSI) in the schedules and daily graphs shows slightly overcompricated conditions, which justifies a certain caution for bullish operators. That said, the recent impulse of rupture beyond the mark of $ 2,800 suggests that the lower resistance path for the price of gold remains up. This, in turn, supports the prospects for an extension of the recent bullish trend well established since the minimum of December 2024.
Meanwhile, any corrective drop now seems to find some support near the area of $ 2,830 before the $ 2,800 brand. An additional drop could be considered a purchase opportunity and it is more likely to remain limited near the horizontal resistance rupture point of 2,773-2,772 $, now turned into support. However, a convincing rupture below the latter could cause some technical sales and pave the way for deeper losses.
FAQS risk feeling
In the world of financial jargon, the two terms “appetite for risk (risk-on)” and “risk aversion (risk-off)” refers to the level of risk that investors are willing to support during the period of reference. In a “Risk-on” market, investors are optimistic about the future and are more willing to buy risk assets. In a “Risk-Off” market, investors begin to “go to the safe” because they are concerned about the future and, therefore, buy less risky assets that are more certain of providing profitability, even if it is relatively modest.
Normally, during periods of “appetite for risk”, stock markets rise, and most raw materials – except gold – are also revalued, since they benefit from positive growth prospects. The currencies of countries that are large exporters of raw materials are strengthened due to the increase in demand, and cryptocurrencies rise. In a market of “risk aversion”, the bonds go up -especially the main bonds of the state -, the gold shines and the refuge currencies such as the Japanese yen, the Swiss Franco and the US dollar benefit.
The Australian dollar (Aud), the Canadian dollar (CAD), the New Zealand dollar (NZD) and the minor currencies, such as the ruble (RUB) and the South African Rand (Tsar), tend to rise in the markets in which There is “appetite for risk.” This is because the economies of these currencies depend largely on exports of raw materials for their growth, and these tend to rise in price during periods of “appetite for risk.” This is because investors foresee a greater demand for raw materials in the future due to the increase in economic activity.
The main currencies that tend to rise during the periods of “risk aversion” are the US dollar (USD), the Japanese yen (JPY) and the Swiss Franco (CHF). The dollar, because it is the world reserve currency and because in times of crisis investors buy American public debt, which is considered safe because it is unlikely that the world’s largest economy between in suspension of payments. The Yen, for the increase in the demand for Japanese state bonds, since a great proportion is in the hands of national investors who probably do not get rid of them, not even in a crisis. The Swiss Franco, because the strict Swiss bank legislation offers investors greater protection of capital.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.