Gold Pushing Higher into Weekend
Gold prices have risen firmly this week with the futures market advancing around 3% higher. A weaker US Dollar and continued global geopolitical uncertainty is fuelling a surge in demand for gold with the market now fast approaching a test of last year’s all-time highs. On the USD front, a lack of follow through on the aggressive, protectionist trade actions Trump threatened to take on day one of his Presidency has been met with disappointment by USD bulls with the Dollar unwind helping drive gold prices higher. While Trump has threatened to action tariffs against Canada and Mexico by Feb 1st, a softer tone on China this week has added to USD bearishness.
Safe-Haven Demand
Global geopolitical uncertainty remains a big driver of gold upside also. Continued conflict in Ukraine and the persistent risk of a potential Russia-NATO conflict emerging, mean that flight-to-safety trading has been a key theme of early 2025. A tentative ceasefire between Israel and Hamas is also a big source of uncertainty with the threat of the deal collapsing. Against this backdrop, gold prices look likely to continue higher near-term while only a rally in USD, linked to tariff action against China, is likely to halt gold’s rally.
Technical Views
Gold
The rally in gold is fast approaching a test of the 2,789.40 2024 highs. While price remains above the 2,718.88 level, the focus remains on a continued push higher, in line with bullish momentum studies. Only a break below that level will alter the current bull view.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.