- The price of gold regained land on Monday in the middle of a sustained weakness of the USD.
- Concerns for Trump’s tariffs further benefit from the Xau/USD torque for sure shelter.
- The fundamental and technical configuration supports the additional profits perspectives.
The price of gold (Xau/USD) begins the new week with a positive note after Friday’s recoil from the neighborhood of the historical maximum and goes up again above the mark of $ 2,900 during the Asian session. The American dollar seller (USD) remains unchanged following a delay in the reciprocal tariffs of the US president, Donald Trump. This, together with the concerns that Trump’s policies could trigger a global commercial war, turn out to be key factors that act as tail wind for the precious metal of safe refuge.
Meanwhile, the growing acceptance in the market that the Federal Reserve (FED) would maintain its hard line position and maintain interest rates without changes for a prolonged period recently to affect the upward feeling around the price of gold without performance . Even the optimism about the conversations between the US and Russia aimed at ending war in Ukraine fails to hinder the positive intradic movement. This, in turn, suggests that the path of lower resistance for the Xau/USD is still upwards.
The price of gold remains well supported by commercial tensions and a widely weaker USD
- The US dollar weakens near its lowest level since December 17, played in reaction to the disappointing US retail sales data on Friday, and helps rekindle the demand for the price of gold.
- The US Census Office reported that retail sales fell 0.9% in January, worse than the expected decrease of 0.1% and the 0.7% increase (reviewed from 0.4%) in December.
- The markets reacted quickly and are now valuing a rate cut by the Federal Reserve in September, instead of the end of the year, further benefiting the precious metal.
- Kevin Hasett, director of the US National Economic Council (NEC), said that a 10 basic drop in 10 -year treasure performance could be a sign that the market expects lower inflation.
- The president of the USA, Donald Trump, ordered officials to formulate plans for reciprocal tariffs on countries that impose taxes on US imports, although he refrained from announcing taxes.
- In addition to this, Trump threatened that car tariffs would arrive as soon as April 2, feeding concerns about a global commercial war and supporting the Xau/USD.
- With US officials and Russia hoping to keep conversations in Saudi Arabia, Russian troops intensify their attacks in eastern Ukraine, further increasing the demand for the safety refuge raw material.
The price of gold could face some resistance about $ 2,925 before trying the historical peak
From a technical perspective, the relative force index (RSI) in the daily chart has left the territory of overcompra, while other oscillators maintain their positive bias. This, in turn, validates the short -term constructive perspectives for the price of gold and supports the prospects of a new upward movement. That said, any subsequent fortress could face a barrier near the horizontal area of ​​2,925 $ before the historical peak, around the region of 2,942 $ -2,943 $. Some additional purchases beyond the latter would be seen as a new trigger for the bulls and would pave the way for an extension of the recent well -established bullish trend observed in the last two months approximately.
On the other hand, the region of 2,885 $ could offer immediate support before the minimum last week, around the area of ​​2,855 $. Any additional drop could be seen as a purchase opportunity near the area of ​​2,834 $, which, in turn, should help limit the fall in the price of gold near the region of 2,815 $. This is followed by the level of $ 2,800 and the support of 2,785 $ -2,784 $, which if decisively breaks, would lay the foundations for a significant corrective fall.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. US dollar was the strongest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.06% | 0.00% | -0.36% | -0.03% | -0.27% | -0.29% | 0.12% | |
| EUR | -0.06% | 0.09% | -0.46% | 0.00% | -0.25% | -0.26% | 0.16% | |
| GBP | -0.01% | -0.09% | -0.48% | -0.09% | -0.29% | -0.35% | 0.07% | |
| JPY | 0.36% | 0.46% | 0.48% | 0.33% | 0.13% | 0.28% | 0.46% | |
| CAD | 0.03% | -0.00% | 0.09% | -0.33% | -0.21% | -0.26% | 0.16% | |
| Aud | 0.27% | 0.25% | 0.29% | -0.13% | 0.21% | -0.01% | 0.41% | |
| NZD | 0.29% | 0.26% | 0.35% | -0.28% | 0.26% | 0.00% | 0.42% | |
| CHF | -0.12% | -0.16% | -0.07% | -0.46% | -0.16% | -0.41% | -0.42% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total imports of US Therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
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.
