Created
: 2025.02.03
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Gold Price Forecast: XAU/USD recovers above $2,800 as USD gives up some gains
World FX news
Breaking news
Gold Price Forecast: XAU/USD recovers above $2,800 as USD gives up some gains
New
2025.02.03 22:47
2025.02.03 22:47
2025.02.03 22:47
- 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) recovers its intraday losses and turns positive in Monday's North American session. The precious metal returns to near its all-time highs above $2,800 as the US Dollar (USD) surrenders some of its gains.
Earlier in the day, the Gold price slumped to near $2,770 after opening mildly higher. The precious metal faced selling pressure as the US Dollar had a gap-up opening after United States (US) President Donald Trump imposed 25% tariffs on Canada and Mexico and 10% on China and started the global trade war. He also reiterated his intentions of a slappy tariff on the Eurozone but didn't provide much information.
Technically, geopolitical tensions improve the appeal of safe-haven assets such as Gold. However, the higher USD has capped Gold's upside.
At the press time, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, gives up gains after rallying to near 109.90 but is still 0.6% higher than its previous close.
This week, investors will pay close attention to the US Nonfarm Payrolls (NFP) data for January, which will be released at the end of the week. The NFP data will significantly influence market expectations for how long the Federal Reserve (Fed) will keep interest rates in the range of 4.25%-4.50%. Fed's approach of keeping a restrictive monetary policy stance weighs on Gold.
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.
Gold daily chart
Gold FAQs
Gold has played a key role in human's history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn't rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country's solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Last updated
: 2025.02.03
Related articles
Metal commodities have come under pressure - ING
2025.02.03 23:02Gold Price Forecast: XAU/USD recovers above $2,800 as USD gives up some gains
2025.02.03 22:46Silver price today: Silver falls, according to FXStreet data
2025.02.03 18:30Silver Price Forecast: XAG/USD retreats below $31.00 as US Dollar climbs on Trump tariffs
2025.02.03 14:27Gold price drifts lower as USD jumps closer to two-year top after Trump's new tariffs
2025.02.03 13:44India Gold price today: Gold falls, according to FXStreet data
2025.02.03 13:36
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Canadian Dollar hits 21-year low as tariff battle weighs
The Canadian Dollar (CAD) plummeted to its lowest bids against the US Dollar (USD) in 21 years at the outset of the trading week after the US and Canada went tit-for-tat on trade tariffs that will pulverize key aspects of both economies.
New
2025.02.04 02:05EUR/USD Price Analysis: Pair trims losses after sharp drop, remains below 20-day SMA
The EUR/USD pair continued its downward trajectory on Monday, slipping to a low around 1.0200 before staging a brief rebound to 1.0300.
New
2025.02.04 01:06USD/JPY pulls back as trade tensions stir market uncertainty
The USD/JPY retreated from daily highs of 155.86 hit after US President Donald Trump advanced on its protectionist policies, enacting tariffs in Canada, Mexico, and China.
New
2025.02.04 00:24Trump fires first salvo in multifront trade war - Danske Bank
Trump fired the first shot in a multifront trade war on Saturday when tariffs on
New
2025.02.03 23:54DXY: Signals of a deeper decline are not yet visible - BBH
The Dollar Index (DXY) has rebounded after probing the upper part of previous multi-month range at 107, BBH FX analysts report.
New
2025.02.03 23:49US Dollar Index gives up some gains, outlook remains firm as US Trump starts trade war
The US Dollar (USD) surrenders some of its intraday gains in Monday's North American session, with the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, dropping to near 109.20 after posting a fresh two-week high near 109.90.
New
2025.02.03 23:37China: CPI inflation likely picked up seasonally - Standard Chartered
China's official manufacturing PMI dropped to 49.1 in January from 50.1 in February, entering contractionary territory again since October. The official survey suggests a broad-based m/m decline in demand and production activity.
New
2025.02.03 23:23Metal commodities have come under pressure - ING
US President Donald Trump carried out his threat over the weekend and imposed tariffs of 25% on Canada and Mexico and 10% on China, starting on Tuesday.
New
2025.02.03 23:02GBP/USD holds up relatively better than peers - Scotiabank
The Pound Sterling (GBP) is weaker on the session but it has held up a little better than its G10 peers, Scotiabank's Chief FX Strategist Shaun Osborne notes, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.03 22:59Oil: Tariffs on Canadian energy imports - ING
US tariffs on imports from Canada, Mexico and China are set to come into effect on 4 February and failing to come to a deal would mean tariffs of 25% on Canadian and Mexican goods and 10% on imports from China. For Canadian energy, the Trump administration decided to impose a tariff of only 10%.
New
2025.02.03 22:57Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
