- Gold price turns positive for the third straight day and draws support from a combination of factors.
- Geopolitical risks, trade war fears and retreating US bond yields lend support to the XAU/USD pair.
- Traders now look forward to Fed speakers for some impetus ahead of the US NFP report on Friday.
Gold price (XAU/USD) regains positive traction following an intraday dip to the $2,655 area, albeit it lacks follow-through and remains below a four-week high through the first half of the European session on Thursday. The US Dollar (USD) stands firm near a two-year high and continues to draw support from the Federal Reserve's (Fed) hawkish signal that it would slow the pace of rate cuts in 2025, which, in turn, seems to cap the non-yielding yellow metal. That said, a combination of factors acts as a tailwind for the commodity and supports prospects for an extension of a near three-week-old uptrend.
Persistent geopolitical risks, along with concerns about US President-elect Donald Trump's tariff plans, continue to weigh on investors' sentiment. This is evident from the prevalent cautious market mood and lends support to the safe-haven Gold price. Meanwhile, the flight to safety triggers a modest pullback in the US Treasury bond yields, which might hold back the USD bulls from placing fresh bets and validate the positive outlook for the XAU/USD. Traders now look to speeches by influential FOMC members for some impetus ahead of the crucial US Nonfarm Payrolls (NFP) report on Friday.
Gold price remains supported by softer risk tone, retreating US bond yields
- Automatic Data Processing (ADP) reported that private sector payrolls in the US rose by 122,000 in December, well below November's increase of 146,000 and missing expectations of 140,000.
- A separate Labor Department report showed Initial Jobless Claims stood at 201,000 in the week ending January 4, marking the lowest reading since February 2024 and pointing to a stable labor market.
- Minutes of the December FOMC meeting showed that policymakers viewed labor market conditions as gradually easing and were in favor of slowing the pace of rate cuts amid stalling disinflation.
- The yield on the benchmark 10-year US government bond shot to its highest level since April 25 on Wednesday, assisting the US Dollar to stand firm near a two-year top and undermining the Gold price.
- CNN reported that US President-elect Donald Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries.
- Ukrainian troops endured significant manpower losses in the face of Russia’s relentless assault. Russia's Defence Ministry said that its forces defeated Ukrainian brigades in Seversk and Chasov Yar.
- Israeli airstrikes continued across the West Bank on Wednesday in the wake of an attack that killed three Israelis on Monday. The Israeli military recovered the body of a hostage from southern Gaza.
- Investors now look to speeches by a slew of influential FOMC members for short-term impetus later during the US session, though the focus will remain glued to the US Nonfarm Payrolls on Friday.
Gold price bulls retain control, dip-buying should limit any corrective slide
From a technical perspective, the overnight swing high, around the $2,670 area, now seems to act as an immediate hurdle, which if cleared will be seen as a fresh trigger for bullish traders. Given that oscillators on the daily chart have started moving in positive territory, the Gold price might then climb to an intermediate resistance near the $2,681-2,683 zone en route to the $2,700 mark.
On the flip side, any further slide is likely to find support near the $2,645 area ahead of the $2,635 region and the weekly low, around the $2,615-2,614 zone touched on Monday. Some follow-through selling below the $2,600 confluence, comprising the 100-day Exponential Moving Average (EMA) and a short-term ascending trend line extending from the November monthly low, will be seen as a fresh trigger for bearish traders. The Gold price might then turn vulnerable to slide further below the December swing low, around the $2,583 area, and test the next relevant support near the $2,550 zone.
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 British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.17% | 0.64% | -0.17% | 0.03% | 0.45% | 0.39% | 0.04% | |
| EUR | -0.17% | 0.47% | -0.31% | -0.14% | 0.30% | 0.22% | -0.12% | |
| GBP | -0.64% | -0.47% | -0.80% | -0.61% | -0.18% | -0.24% | -0.57% | |
| JPY | 0.17% | 0.31% | 0.80% | 0.18% | 0.61% | 0.50% | 0.21% | |
| CAD | -0.03% | 0.14% | 0.61% | -0.18% | 0.43% | 0.36% | 0.03% | |
| AUD | -0.45% | -0.30% | 0.18% | -0.61% | -0.43% | -0.08% | -0.39% | |
| NZD | -0.39% | -0.22% | 0.24% | -0.50% | -0.36% | 0.08% | -0.32% | |
| CHF | -0.04% | 0.12% | 0.57% | -0.21% | -0.03% | 0.39% | 0.32% |
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).
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 clings to strong gains above 1.1000 as US-China trade war deepens Premium
EUR/USD trades decisively higher on the day above 1.1000 on Wednesday as the US Dollar (USD) stays under persistent selling pressure on growing fears over a recession as a result of the US trade war with China. Later in the American session, the Federal Reserve will release the minutes of the March policy meeting.
GBP/USD holds above 1.2800 on broad USD weakness
GBP/USD stays in positive territory above 1.2800 heading into the American session on Wednesday. After China's decision to respond to the US tariffs by imposing additional 84% tariffs on US goods, the US Dollar remains under pressure and helps the pair hold its ground ahead of FOMC Minutes.
Gold price builds on strong intraday gains; bulls retain control near $3,050 area amid risk-off mood
Gold price climbs back closer to the $3,050 area during the early European session on Thursday as worries that an all-out global trade war would push the world economy into recession continue to boost safe-haven demand.
XRP Price Forecast: XXRP ETF and Trump tariffs shaping XRP fundamental outlook
XRP struggles to stay afloat, with key support levels crumbling due to volatility from macroeconomic factors, including United States President Donald Trump's reciprocal tariffs kicking in on Wednesday.
Tariff rollercoaster continues as China slapped with 104% levies
The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.
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.