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    Gold Holds Near Recent High Amid Tariff Uncertainty

    January 23, 2025

    Key Points:

    • Gold (XAUUSD) remains above $2,750 per ounce, closing at $2,753.10, holding gains and trading near its recent high of $2,756.46.
    • Uncertainty surrounding Trump’s tariff plans continues to support XAUUSD’s safe-haven demand.
    • ECB signals imminent rate cuts, while the Fed is expected to maintain rates with a hawkish stance.
    • Geopolitical tensions in the Middle East further bolster XAUUSD’s appeal.

    XAUUSD held firm above $2,750 per ounce, closing at $2,753.10, maintaining a three-day rally and trading near its recent high of $2,756.46. Investors continue to seek the precious metal as a safe-haven asset, responding to uncertainty surrounding President Donald Trump’s tariff plans and their potential impact on global trade.

    Despite previous expectations of aggressive tariff hikes, markets are adjusting to a more measured approach, keeping XAUUSD well-supported in the current trading range.

    Technical Analysis

    Picture: XAUUSD consolidates near key levels amid cautious market sentiment and economic uncertainties. Learn more on the VT Markets app.

    Looking at the XAUUSD chart, we can see that the price closed at 2753.10, reflecting a 0.29% increase, after reaching a high of 2756.46 and a low of 2749.53, indicating mild bullish momentum. The moving averages (MA 5,10,30) suggest consolidation, with the shorter MAs converging around the 30-period MA, indicating a lack of strong directional momentum.

    The MACD (12,26,9) shows a potential shift towards bullish momentum as the histogram moves into positive territory. Resistance is seen at 2763.36, while support is holding around 2734.58, making these levels crucial for potential market movements.

    Central Bank Policies in Focus

    On the monetary policy front, the European Central Bank (ECB) signaled the likelihood of rate cuts, reinforcing expectations of a policy easing at next week’s meeting. This dovish stance could provide further support for non-yielding XAUUSD, making it an attractive alternative to lower-yielding euro assets.

    Meanwhile, the Federal Reserve is expected to hold interest rates steady at its upcoming meeting, maintaining a hawkish outlook amid inflationary concerns stemming from Trump’s economic policies. A firm rate stance could pose resistance to further XAUUSD gains in the short term.

    Geopolitical Tensions Add to XAUUSD’s Appeal

    Geopolitical tensions continue to underpin XAUUSD demand, with the ceasefire agreement between Israel and Hamas coming under strain after an Israeli drone strike in southern Lebanon’s Hasbaya region. The renewed conflict has driven investors towards safe-haven assets, providing further upside support for XAUUSD.

    The Outlook on Gold

    Traders will closely monitor upcoming U.S. trade policy developments and geopolitical risks, as well as key central bank meetings. XAUUSD’s ability to sustain momentum above key support levels will be crucial in shaping its near-term outlook.

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