Key Points:
- Gold closed at $2,913.87, after hitting an intraday high of $2,914.82 and a low of $2,896.84.
- The U.S. dollar index remains weak, boosting demand for gold as a hedge against economic uncertainty.
Gold prices held firm on Friday, hovering near $2,914 per ounce, as traders locked in profits following this week’s gains. The precious metal remains on track for a 1.6% weekly increase, supported by ongoing trade uncertainty and expectations for U.S. economic data.
The metal closed at $2,913.87, easing 0.2% from previous levels, while U.S. gold futures slipped 0.5% to $2,911.90. Earlier in the session, bullion hit a high of $2,914.82, before briefly dipping to $2,896.84 as traders adjusted positions ahead of the U.S. non-farm payrolls report.
U.S. President Donald Trump suspended the 25% tariffs on Canada and Mexico that were implemented earlier this week. However, the uncertainty surrounding trade policy continues to support gold, as traders assess the broader economic impact.
Technical Analysis
Gold (XAU/USD) is trading at $2,913.87, down 0.20% for the session. The price tested a low of $2,896.84, where buyers stepped in to provide support, and reached a high of $2,914.82 before pulling back. The moving averages (5, 10, 30) indicate a mixed trend, with price action stabilizing near resistance. The MACD is showing signs of a bullish crossover, suggesting that momentum may shift in favor of buyers if gold breaks above $2,920.
Picture: Gold steadies near $2,914 as buyers test key resistance, as seen on the VT Markets app
For further upside, a breakout above $2,920 could lead to a test of $2,930 – $2,940, where sellers may emerge. On the downside, support is firm at $2,891, and a break below this level could open the door for declines toward $2,880. Traders should keep an eye on U.S. economic data, Federal Reserve policy signals, and risk sentiment, as these factors will heavily influence gold’s next move.
The U.S. dollar index remains weak, which has provided further support for gold prices. The ongoing volatility in currency markets suggests traders are still cautious about the global growth outlook.
See also: US Dollar Stagnates Near Four-Month Low
Federal Reserve Outlook and Jobs Data in Focus
Federal Reserve Governor Christopher Waller signaled that while he is against a rate cut in the March meeting, easing later in the year is still a possibility if inflation continues to decline.
Market participants are now closely watching the U.S. non-farm payrolls report, expected to show a 160,000 job gain for February. If the data falls short of expectations, it could strengthen the case for Fed rate cuts in the coming months, potentially driving gold higher.
