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Gold Price Forecast: XAU/USD comfortable around $2,910

XAU/USD Current price: $2,915.67

  • Expectations about upcoming US President Donald Trump announcement lifted the mood.
  • The United States will publish January Retail Sales on Friday.
  • XAU/USD stable above $2,900 and with scope to retest its record high.

Spot Gold keeps grinding higher on Thursday, currently trading at around $2,920 a troy ounce. Financial markets turned optimistic in early Asia session amid hopes the conflict between Russia and Ukraine could come to an end with the intervention of the United States (US).

Risk appetite was further fueled by market talks pointing at US President Donald Trump announcing gradual tariffs later in the day. Trump imposed 25% tariffs on all steel and aluminium imports to the country at the beginning of the week and anticipated another round of levies to be announced later today. CNBC reported that such fresh tariffs would not come into effect today, adding that there would be a delay of “some months.”

Meanwhile, Trump announced through social media that he will give a news conference on reciprocal tariffs today at 13:00 EST or 18:00 GMT.

Data-wise, market players ignored higher-than-anticipated US Producer Price Index (PPI) data. Inflation at wholesale levels rose by 0.4% on a monthly basis in January, vs the 0.3% anticipated by market players. From a year earlier, the PPI was up 3.5% against expectations of a 3.2% advance. Initial Jobless Claims, on the other hand, rose by less than expected, up 213K in the week ended February 7. On Friday, the macroeconomic calendar will include January US Retail Sales.

XAU/USD short-term technical outlook

The XAU/USD pair has recovered its bullish tone, posting a higher high and a higher low on a daily basis. The same chart shows technical indicators consolidate within overbought territory, somehow hinting at a corrective slide yet far from confirming it. Finally, the pair keeps developing above all its moving averages, with a bullish 20 Simple Moving Average (SMA) advancing beyond the 100 and 200 SMAs while providing mid-term dynamic support at around $2,808.30.

In the near term, and according to the 4-hour chart, the risk skews to the upside. The XAU/USD pair is finding intraday support at around a mildly bullish 20 SMA, currently at $2,904.60. The 100 and 200 SMAs, in the meantime, keep advancing far below the shorter one. Finally, technical indicators turned north within positive levels, favoring another leg north.

Support levels: 2,904.60 2,889.80 2,872.30

Resistance levels: 2,925.10 2,942.50 2,960.00

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Author

Valeria Bednarik

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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