- Gold price pauses early Thursday after reaching a three-month top on Wednesday at $2,763.
- Trump’s tariffs uncertainty offset China’s optimism, leaving Gold price and the US Dollar sidelined.
- Technically, Gold price stays bullish, with eyes on the symmetrical triangle target at $2,785 or record highs.
Gold price consolidates its three-day bullish momentum early Thursday, having reached three-month highs of $2,763 on Wednesday. Gold buyers take a breather as attention turns toward US fundamentals, with the weekly Jobless Claims on tap.
Gold price pauses before the next push higher
Gold traders digest the latest developments surrounding US President Donald Trump’s recent tariff plans, which offset the emerging optimism from China due to additional supportive measures from local authorities.
Trump’s plan to impose 25% tariffs on Mexico and Canada and 10% tariffs on China is expected to face opposition from many of his fellow Republicans in Congress as the 47th US President is planning to explicitly use revenue from higher tariffs on imported goods to help pay for government programs and cover promised tax cuts.
Trump’s tariffs uncertainty likely diminishes the haven demand for the US Dollar (USD), Gold price and US government bonds, in turn boding well for the US Treasury bond yields.
However, the Gold price retreat remains capped by the renewed optimism induced by the China Securities Regulatory Commission’s (CSRC) new supportive measures to prop up Chinese equity markets. China is the world’s top Gold consumer.
Gold traders now brace for a set of top-tier US economic data releases due Thursday to provide fresh clues on this year's US Federal Reserve (Fed) interest rate-cut outlook. Friday’s S&P Global US preliminary PMI data will help offer insights into the state of the economy. Markets are pricing in a total easing of 37 basis points (bps) from the Fed this year, with the first-rate cut not fully priced until July, per LSEG data.
Weak US data will double down on expectations of two Fed rate cuts this year, which were revived after the tame inflation reports for December published last week.
It’s worth noting that US President Trump’s tariff talks will continue to drive risk sentiment, the US Dollar and the Gold price action as the US statistics might play second fiddle.
Gold price technical analysis: Daily chart
Gold price maintains its bullish potential from a short-term perspective and remains poised to test the record high of $2,790 or the symmetrical triangle target, measured at $2,785.
Gold price charted a symmetrical triangle breakout earlier this month while it holds comfortably above all the major daily simple moving averages (SMA), supporting the bullish case.
The 14-day Relative Strength Index (RSI) sits beneath the overbought region, currently near 67, supporting the case for more upside.
Gold price must seek a daily closing above the November 2024 high of $2,762 to take on the next target near the aforementioned resistance near $2,790.
Conversely, Gold price could test the previous day’s low of $2,742 if the pullback gathers strength.
Sellers will then aim for the $2,700 round level, below which the 21-day SMA at $2,673 will be threatened.
Economic Indicator
Initial Jobless Claims
The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. A larger-than-expected number indicates weakness in the US labor market, reflects negatively on the US economy, and is negative for the US Dollar (USD). On the other hand, a decreasing number should be taken as bullish for the USD.
Read more.Next release: Thu Jan 23, 2025 13:30
Frequency: Weekly
Consensus: 220K
Previous: 217K
Source: US Department of Labor
Every Thursday, the US Department of Labor publishes the number of previous week’s initial claims for unemployment benefits in the US. Since this reading could be highly volatile, investors may pay closer attention to the four-week average. A downtrend is seen as a sign of an improving labour market and could have a positive impact on the USD’s performance against its rivals and vice versa.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

AUD/USD holds ground above 0.6300 after Chinese data
AUD/USD holds higher ground above 0.6300 in the Asian session on Monday. The pair stays firm after mostly upbeat China's activity data for Janauary and February. Chinese government to boost consumption also aids the Aussie's upside amid a weaker US Dollar and risk appetite.

USD/JPY rebounds to 149.00; focus shifts to US data
USD/JPY has staged a decent comeback to test 149.00 amid a positive risk tone early Monday. The prevalent bearish sentiment surrounding the US Dollar and the divergent Fed-BoJ policy expectations could limit the pair's further upside. US Retail Sales data eyed.

Gold price hangs close to $3,000 ahead of US Retail Sales data
Gold price is trading better bid below the historic high of $3,005 reached last Friday. The upside potential in Gold price remains intact amid favorable fundamental and technical factors.

Will Ripple reach a $200 billion valuation if SEC approves altcoin ETFs in 2025?
XRP price rebounded above $2.42 on Friday, marking a 28% recovery from the weekly timeframe low of $1.90. The rally was fueled by the U.S. Securities and Exchange Commission’s kicking off settlement talks with Ripple, and speculations the Blackrock could launch altcoin derivatives products.

Week ahead – Central banks in focus amid trade war turmoil
Fed decides on policy amid recession fears. Yen traders lock gaze on BoJ for hike signals. SNB seen cutting interest rates by another 25bps. BoE to stand pat after February’s dovish cut.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.