- The gold maintains the profits, quoting at 2,797 $, while the White House clarifies the confusion about the tariff schedule.
- The tariff announcements carry a brief fall of gold with the operators looking at the resistance of 2,800 $.
- Despite the stable data of the December underlying PCE, geopolitical uncertainty maintains gold prices.
The price of gold is quoted near historical maximums above $ 2,800 on Friday, since market participants become aES -Risk after the White House corrected previous reports of reuters indicating that the United States (USA) It would not impose tariffs to Canada and Mexico on February 1 and instead would do so on March 1. At the time of writing, the XAU/USD quote at 2,797 $, with a rise of 0.15%.
The US press secretary, Karoline Leavitt, emphasized that 25% tariffs would apply to Canada and Mexico on February 1, Saturday, adding that the previous reports were incorrect. He also added that Washington would apply 10% tariffs to the imported goods from China.
After the report, the dollar advanced and the Gold cut some of its previous profits above $ 2,800. The inability of the ingot to close the day above the latter could pave the way for benefits before the US non -agricultural payroll data next week.
An previous Reuters report revealed that the US was ready to impose tariffs until March 1. The article indicated that Trump would announce tariffs that would include a process for countries to seek exemptions in certain imports. The Personal Consumption Pricing Index (PCE) of December, the Fed’s favorite inflation indicator, increased in December as expected, exceeding the number of November. However, in annual terms, the underlying PCE remained unchanged with respect to the previous figures.
The data arrive after the moderate figures of the GDP of the fourth quarter and the last monetary policy meeting of the Federal Reserve. Meanwhile, Fed officials have begun to make public comments, with governor Michelle Bowman and Chicago Fed president, Austen Goolsbee, commenting on economic conditions.
Daily market movements: The price of gold advances through US tariff holders.
- The price of gold rises despite the increase in US treasury yields The 10 -year treasure yield performance rises six basic points to 4,571%. The real US yields, measured by the treasure titles against inflation (Tips) at 10 years, followed the same path, uploading seven basic points to 2,146%.
- The U.S. underlying PCE rose 2.8% year -on -year in December, in line with expectations, while monthly inflation increased by 0.2%, compared to 0.1% of November.
- The governor of the Fed, Michelle Bowman, maintained a hard line posture, promoting the US dollar by emphasizing that the risks of inflation are still inclined to the rise. Although he did not rule out rate cuts, he stressed that they would be dependent on the data and probably gradual.
- The president of the Chicago Fed, Austen Goolsbee, expressed confidence in the December inflation report, stating that inflation is progressing towards the objective of 2%.
- Futures of the monetary market now discount rate cuts of 50 basic points by the Fed in 2025, with the operators anticipating the first movement in June.
Technical Perspective of the Xau/USD: The bundles of the price of gold stalk about $ 2,800
The Alcista del Oro trend has recovered impulse, rising to a historical maximum of $ 2,817 reached previously, while the bulls point to higher prices such as the milestone of $ 2,850. A sustained rally could see the buyers pointing to the latter, followed by $ 2,900 and eventually the $ 3,000 mark.
On the contrary, sellers must exceed the minimum of January 27, $ 2,730, before the golden metal falls towards $ 2,700. If it is exceeded, the following objective would be the confluence of the simple mobile socks (SMA) of 50 and 100 days from 2,666 $ to 2,671 $.
Downwards, sellers would need to push the Xau/USD below $ 2,750 to strengthen the bearish prospects for $ 2,700. A rupture below that level could open the door to more losses with a key support in 2,663 $, where simple mobile socks (SMA) converge of 50 and 100 days.
FAQS GOLD
Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.
Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.
The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.
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.
