- Gold touches touched at all $ 2,954 amid uncertainty in commercial policy.
- Trump expands the definitions to wood and soft goods, adding market tensions.
- US data mixed: PMI manufacturing improves, but PMI services.
The price of gold is late on Friday, ready to finish the week positively, where eight consecutive weeks accumulate from the gains that paid the yellow metal to the highest level ever of $ 2,954. At the time of this report, Xau/USD trades at $ 2,940, a decrease of 0.15 %.
The financial market novel has not changed with US President Donald Trump continuing with the speech related to definitions. In addition to imposing a 25 % tariff on cars, pharmaceutical preparations and chips, Trump expanded duties to wood and other soft goods.
This has led to the strengthening of gathering in alloys, as investors who are looking for safety prompted high prices amid uncertainty about American trade policies. Meanwhile, political geography took a second stage where there was some progress in the discussion to end the war of Russia, Ukraine, which feared the markets.
Trade activity was mixed in the United States. PMI manufacturing improved. On the contrary, the information managers index in services decreased for the first time since January 2023.
Other data showed that current homes sales decreased, and consumer morale reading has deteriorated at the University of Michigan (UOM) for the month of February.
Digest Market Mark: The price of gold failed to take advantage of the decrease in US revenues
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Treasury bonds in the United States decrease for 10 years nine basis points (BPS) and gives 4.416 %.
- The real United States, which is inversely associated with alloys, drops four basis points to 1.996 %, which is the equal wind of alloys.
- The United States S & P Global revealed the expansion of the information managers index in February 51.6, up from 51.2, bypassing expectations. PMi has decreased services from 52.9 to 49.7.
- The Michigan University’s Memulation Index in February decreased from 71.1 to 64.7. Inflation expectations in American consumers increased for one year from 3.3 % to 4.3 % as expected, for a period of five years, are fastened by 3.5 %, up from 3.2 % in the previous month.
- The minutes of the Federal Reserve from Wednesday revealed that Trump’s trade and immigration policies have fueled fears of high prices.
- The World Gold Council revealed that the purchases of the central bank increased more than 54 % year on an annual basis to 333 tons after Trump’s victory.
- Federal Reserve Funds in the Money Market are prices at 50 basis points for mitigation by the Federal Reserve in 2025.
Technical expectations xau/USD: Gold price face resistance and decline
The price of gold remains biased in it, yet the trend appears to be exhausted. The RSI Index indicates that buyers lose the land as the relative power index comes out of the peak purchase area that opens the door to decline in alloys.
The first main support field to be seen is $ 2900. Once it exceeds, sellers target a decrease on February 14 of $ 2,877, followed by the lowest daily level on February 12 of $ 2864. On the contrary, if Xau/USD rises beyond $ 2954, the first resistance will be $ 2950, ​​followed by $ 3000.
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of the risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate the price of gold due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
