XAU/USD Current price: $2,666.56
- Headlines related to US President-elect Donald Trump’s tariffs shook financial boards.
- Mixed United States employment-related data had no impact on the US Dollar.
- XAU/USD extends its weekly gains, aims for higher highs in the near term.
Spot Gold trades marginally higher on Wednesday, as dominant risk-aversion keeps safe-haven assets evenly demanded, preventing XAU/USD from running far yet keeping it afloat. The bright metal added a few bucks during American hours and trades at around $2,660, as once again, headlines related to President-elect Donald Trump’s tariffs plans shook financial markets.
According to CNN, Trump is considering “declaring a national economic emergency to provide legal justification for a large swath of universal tariffs on allies and adversaries, four sources familiar with the matter.” The International Economic Emergency Powers Act (IEEPA) will unilaterally authorize the president to manage imports during a national emergency.
The news weighed on the market’s mood and boosted demand for the US Dollar (USD), although the Greenback pared gains ahead of the release of the Federal Open Market Committee (FOMC) Meeting Minutes. The document is expected to shed light on policymakers' thoughts behind the latest 25 basis points (bps) interest rate cut and shed light on what is next on the monetary policy front.
Meanwhile, the US released the December ADP Employment Report showing that the private sector added 122K new jobs in the month, missing expectations of 140K. Additionally, Initial Jobless Claims for the week ended January 3 increased by 201K, better than the 218K expected and below the previous 211K. Mixed employment figures had no impact on financial markets. Speculative interest
XAU/USD short-term technical outlook
The daily chart for XAU/USD shows it holds on to gains near a fresh multi-week high of $2,667.67, while the risk skews to the upside. The bright metal gains upward traction, but additional gains are still unclear. Technical indicators crossed their midlines with encouraging slopes but remain within neutral levels. At the same time, the 20 Simple Moving Average (SMA) remains directionless, providing dynamic support at around 2,640. The longer moving averages, in the meantime, keep advancing below the shorter one.
In the near term, and according to the 4-hour chart, XAU/USD is poised to extend its advance. The pair currently develops above all its moving averages, although a flat 20 SMA converges with a directionless 200 SMA at $2,645.46. The 100 SMA, in the meantime, is also flat yet at $2,633.70. Finally, technical indicators maintain their upward slopes well above their midlines, in line with additional gains ahead.
Support levels: 2,626.30 2,614.45 2,596.00
Resistance levels: 2,649.50 2,665.10 2,678.85
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
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
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.