XAUUSD spiked to a new record high, with continued upward momentum pushing the relative strength index (RSI) into overbought territory.Upcoming changes in US trade policy could support precious metals prices as they will increase uncertainty about the outlook for global economic growth.
Against this backdrop, monetary authorities may still face pressure to take measures to protect their economies, even though US President Donald Trump has postponed tariffs on Mexico and Canada. Additionally, the risk of policy mistakes by major central banks could push gold prices higher as gold becomes more attractive as an alternative to fiat currencies.
After Mexico and the United States reached an agreement to postpone tariffs, Canada did the same and the world's attention immediately turned to China. However, a sudden easing appears unlikely after China retaliated against the US's comprehensive tariffs on Tuesday and warned some US companies, including Google, that they could face sanctions.
While global markets welcomed the US postponement of tariffs on Mexico and Canada, the partial easing does not eliminate long-running trade tensions in Asia. A planned phone call between US President Donald Trump and Chinese President Xi Jinping on Tuesday did not take place, a sign that relations between the two sides remain frosty.
However, China's tariff measures will not officially take effect until February 10, giving Trump and Xi Jinping time to reach a "deal."
While currency markets still expect the Federal Reserve to cut interest rates twice this year (each time by 25 basis points), inflationary pressures from US tariffs are increasing, which makes the path of monetary policy through 2025 still very uncertain.
![GOLD MARKET ANALYSIS AND COMMENTARY - [Feb 03 - Feb 07]](https://s3.tradingview.com/o/Onv4n4Kz_mid.png)
On the daily chart,
XAUUSD renewed its all-time high after reaching the target increase at 2,846 USD, which readers noted in the previous issue. With that said, a break above this key technical level would qualify gold for a new bull run, and the target would then be around $2,878 in the short term rather than the original price point of $2,900.Although the RSI has entered the overbought zone, there are no signs of a decline indicating that the gold price may correct with the uptrend depicted by the line.
As long as gold remains in/above the price channel, it still has a short-term trend to the upside, with the current position suitable for a new bull cycle to be opened. Notable locations will also be listed as follows.
Support: 2,846 – 2,824USD
Resistance: 2,878 – 2,900USD
SELL XAUUSD PRICE 2863 - 2861⚡️
↠↠ Stoploss 2867
→Take Profit 1 2856
↨
→Take Profit 2 2851
BUY XAUUSD PRICE 2823 - 2825⚡️
↠↠ Stoploss 2819
→Take Profit 1 2830
↨
→Take Profit 2 2835
Trade active
Plan SELL +45pips close a part move SL to entry.🔥Trade closed: target reached
Plan SELL HIT TP1 +65pips. Heading to TP2 😵😵😵Note
Note
🔴Spot gold prices fell below $2,860 an ounce, down $8 in the short term, or 0.25% on the day.Note
Spot gold prices were above $2,867 an ounce, up 0.41% on the day.Note
Spot gold prices rose about $10 in the short term, reaching a new intraday high of $2,876.40 an ounce, up about 0.51%.Note
▫️ Spot Gold hit $2940 per ounce or more, up 1.11% on the day.
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🔰| Forex trading
🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate
🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate
🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.