Gold Price Forecast: XAU/USD pressures fresh multi-week highs

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