- The price of gold in the Asian session will rise early on Wednesday.
- The fears of the trade war between investors enhances safe flows, which benefit from the price of gold.
- Investors are preparing for new home sales in January and Fedspeak later on Wednesday.
The price of gold (Xau/USD) restores some of the lost land after reaching the lowest level per week in the previous session. Continuous uncertainty about instability about US President Donald Trump’s tariff plans provide some support for yellow minerals, which is one of the traditional assets of safety.
However, analysts believe that Trump’s higher definitions have sparked inflation fears in the Federal Federal Reserve (Fed), which may convince the US Central Bank to maintain higher interest rates for a longer period. This, in turn, may acquire the upward trend of precious minerals as the highest interest rates distort the non -return gold.
New American homes sales will be released for January later on Wednesday. Also, federal reserve officials, including Raphael Bustic and Thomas Parkin, will speak on the same day. Friday, all attention will be in issuing personal consumption expenses of the United States (PCE) – the price index for January.
The price of gold is gaining traction with the continued fears of the trade war
- Trump signed another executive late on Tuesday, indicating the US Department of Commerce administration to launch an official “investigation” in copper markets.
- Trump stated late on Monday that the customs tariff for Canadian and Mexican imports were “on time and on the appointed date” despite the efforts made by the two countries to enhance border security and stop the flow of fentanel to the United States before the deadline on March 4, for each Reuters, Reuters,
- US consumer confidence has decreased more since August 2021, and decreased to 98.3 in February 105.3 before, according to the conference council.
- The head of the Federal Reserve at Richmond Thomas Parkin said late on Tuesday that it will follow the waiting and vision approach regarding the interest rate policy of the Central Bank until the inflation becomes clear due to the goal of the Federal Reserve by 2 %.
- The President of the Fed in Dallas Lori Logan stated that it would be appropriate in the medium term for the Federal Reserve to buy the shortest period of time more than one that can reflect its wallet more quickly the formation of the cabinet version, for each Bloomberg.
The price of gold maintains the bullish tone, despite the unification in the shortest term
The edges of gold prices are higher per day. In the near term, the precious metal is still covered in the narrow trading scope. However, the ups of the gold price are still intact on the daily chart, with a higher price of the SIA moving average for 100 days (EMA). Moreover, the 14 -day relative indicator (RSI) stands over the midfield near 64.0, indicating that the less resistant path is the upward trend.
It seems that the highest level of all times is $ 2,957 is a difficult point of view for golden bulls. The upper transition from the aforementioned level may move to the next ups at $ 2980, which is the upper boundaries of the Bollegerer, on its way to the psychological level of $ 3,000.
In the event of a decline, the lowest level on February 25 works at $ 2,888 as a primary support level for yellow metals. The extended road losses can pave the way to $ 2,795, which is the minimum Bollegerer. The main dispute level for watching is $ 2718, EMA for 100 days.
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.
