Gold Price Forecast: XAU/USD hits fresh highs above $4,700 on trade tensions
- Gold appreciates to fresh all-time highs beyond $4,700 on risk-aversion.
- The US Dollar dives as the EU-US trade rift escalates.
- Technical indicators remain bullish with the RSI approaching overbought levels.
Gold (XAU/USD) keeps trading higher on Tuesday, reaching fresh record highs beyond $4,720, fuelled by the risk-averse sentiment as the trade rift between the US and the European Union concerning the status of Greenland escalates.
Precious metals are drawing support as demand for safe assets increases. Concerns about Trump’s erratic trade policy have sent the US Dollar Index more than 0.8% lower over the last two days, while the US 10-year yields have rallied to their highest level since September on a “Sell America” trade similar to the one that followed April’s “Liberation day”
Technical analysis: The next bullish target is at the 4,770 area
XAU/USD trades at $4,720, with no sign of a trend shift on the horizon other than the bearish divergence in the 4-hour Relative Strength Index, despite the overstretched rally from mid-October lows.
The 100-period Simple Moving Average (SMA) keeps trending higher, which endorses the bullish scenario. The Moving Average Convergence Divergence (MACD) line is above the Signal line and above zero, with a widening positive histogram that suggests strengthening bullish momentum. The Relative Strength Index (RSI) prints 69.88, approaching overbought levels
On the upside, the pair might find resistance at the 161.8% Fibonacci extension of the January 8-12 rally, in the $4,770 area, ahead of the $4,800 psychological level. A bearish reversal below $4,700 might find support at the previous high in the $4,640 area ahead of January 13 and 14 lows near $4,570
(The technical analysis of this story was written with the help of an AI tool.)
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.63% | -0.35% | -0.22% | -0.25% | -0.20% | -0.67% | -0.85% | |
| EUR | 0.63% | 0.29% | 0.41% | 0.39% | 0.44% | -0.03% | -0.22% | |
| GBP | 0.35% | -0.29% | 0.13% | 0.10% | 0.15% | -0.31% | -0.51% | |
| JPY | 0.22% | -0.41% | -0.13% | -0.01% | 0.04% | -0.43% | -0.62% | |
| CAD | 0.25% | -0.39% | -0.10% | 0.01% | 0.05% | -0.41% | -0.60% | |
| AUD | 0.20% | -0.44% | -0.15% | -0.04% | -0.05% | -0.45% | -0.63% | |
| NZD | 0.67% | 0.03% | 0.31% | 0.43% | 0.41% | 0.45% | -0.19% | |
| CHF | 0.85% | 0.22% | 0.51% | 0.62% | 0.60% | 0.63% | 0.19% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
