03 Feb 2025

Earlier in the day, the price of Gold experienced a decline, dropping to approximately $2,770 after a modestly higher opening. The precious metal encountered selling pressure as the US Dollar surged following the announcement by United States President Donald Trump of a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on China, thereby initiating a global trade conflict. He also reiterated his plans for a potential tariff on the Eurozone, although he did not provide further details.

From a technical perspective, geopolitical tensions tend to enhance the attractiveness of safe-haven assets like Gold. Nevertheless, the strengthening US Dollar has limited Gold's potential for gains.

At the time of reporting, the US Dollar Index (DXY), which measures the value of the Dollar against six major currencies, has relinquished some of its earlier gains after reaching nearly 109.90, yet remains 0.6% higher than its previous closing value.

This week, market participants will closely monitor the US Nonfarm Payrolls (NFP) data for January, scheduled for release at the week's end. The NFP figures are expected to have a substantial impact on market expectations regarding the duration for which the Federal Reserve (Fed) will maintain interest rates within the 4.25%-4.50% range. The Fed's commitment to a restrictive monetary policy continues to exert pressure on Gold.

• Gold price rebounds strongly above $2,800 as the US Dollar surrenders some gains.
• The imposition of tariffs by US President Trump on his North American peers and China has improved safe-haven demand.
• This week, investors will focus on the US NFP data for January
• Gold price (XAU/USD) has rebounded from its earlier losses and is now exhibiting positive movement during the North American session on Monday. The precious metal is approaching its historical peak, surpassing $2,800, as the US Dollar (USD) relinquishes some of its recent gains.

• Gold technical analysis

  Gold price trades around all-time highs at $2,817.30. The upward-sloping 20-day Exponential Moving Average (EMA) near $2,735.70 suggests that the near-term trend is bullish.

  The 14-day Relative Strength Index (RSI) oscillates in the 60.00-80.00 range, indicating a strong bullish momentum.

  Looking up, the Gold price could rise to near $2,900. On the contrary, the January 27 low of $2,730.50 will act as support