11 Feb 2025

Critical Levels:

• Resistance: 2,952.000 (highest level in the list).

• Immediate Support Zone: 2,896.000–2,924.000 (cluster of recent levels).

• Major Support: 2,792.600 (lowest level).

Potential Targets:

1. Bullish Scenario:

   • A break above 2,952.000 could signal further upward momentum, with the next psychological target at 3,000.000.

2. Bearish Scenario:

   • A breakdown below 2,896.000 might test 2,792.600 as the next major support.

     
     

Gold price (XAU/USD) has halted its slight intraday decline from a new all-time high and is trading with a positive outlook, remaining comfortably above the $2,900 threshold during the early European session on Tuesday. The recent tariffs imposed by US President Donald Trump on commodity imports, along with his intentions to implement reciprocal tariffs on other nations, have reignited concerns regarding a global trade war. This situation, coupled with ongoing geopolitical tensions, continues to support demand for the traditional safe-haven asset.

Additionally, the anticipation that Trump's protectionist measures may lead to increased inflation is advantageous for gold, which is regarded as a safeguard against rising prices. However, speculation that the Federal Reserve (Fed) will maintain steady interest rates, given the resilience of the US labor market and inflationary pressures, poses a challenge for the non-yielding yellow metal. Furthermore, a slight strengthening of the US Dollar (USD) has led to some intraday profit-taking in the XAU/USD market.

US President Donald Trump issued two proclamations on Monday, implementing a 25% tariff on metals and revoking all exemptions related to steel and aluminum tariffs that were initially established during his first term from 2016 to 2020. Furthermore, Trump informed reporters that he would unveil reciprocal tariffs on other nations within the next two days, which contributed to a surge in the price of safe-haven Gold, reaching a new record high during the Asian trading session on Tuesday.

Regarding tensions in the Middle East, Trump stated that Hamas must release all hostages by midday Saturday; otherwise, he would consider proposing the cancellation of the Israel-Hamas ceasefire, potentially leading to significant escalation.

The US Dollar has risen to its highest level in over a week, driven by expectations that Trump's protectionist measures could reignite inflation in the United States, compelling the Federal Reserve to maintain its hawkish approach and keep interest rates unchanged. A stronger USD, combined with overbought conditions on the daily chart, has led to some profit-taking in the XAU/USD pair as traders reposition themselves ahead of Fed Chair Jerome Powell's upcoming congressional testimony. Powell's comments will be closely monitored for insights regarding the Fed's potential rate-cut trajectory, which will, in turn, affect short-term USD price movements and provide new directional momentum for the commodity.