Profit taking action, GOLD decreased significantly for OANDA:XAUUSD by Xayah_trading

Profit taking action, GOLD decreased significantly

XAUUSD fell significantly as investors took profits after hitting record highs, but remained optimistic as US President Donald Trump's new tariffs raised fears of a global trade war.

Trump has sharply increased tariffs on steel and aluminum imports to 25% with "no exceptions or exemptions," a move he hopes will help struggling U.S. industries but could also spark a trade war on multiple fronts.

Traders will need to keep an eye on US inflation data today (Wednesday) for fresh clues on the outlook for interest rates in the world's largest economy.

Federal Reserve Chairman Jerome Powell said the central bank is in no rush to cut interest rates because the economy is "strong overall" and inflation remains above its 2% target.
Powell's comments were part of an opening statement he prepared for a Senate Banking Committee hearing.

Inflation data is in focus this trading day, and higher-than-expected inflation data could extend the Fed's pause on interest rate hikes, which could lead to a slowdown in gold's performance in the short term.
The impact is also reversed if inflation data is lower than expected, which further boosts market sentiment about the possibility of the Fed cutting interest rates next quarter.
Gold is considered a hedge against inflation, but higher interest rates will reduce the appeal of this non-yielding asset.

GOLD skyrocketed then corrected down, main trend structure

Analysis of technical prospects for XAUUSD
On the daily chart, gold corrected sharply but in general the position and technical structure still support the possibility of price increases. While the trend from the short-term price channel remains stable and the Relative Strength Index has not provided a clear bearish signal.

At the same time, the support levels from the 0.382% and 0.236% Fibonacci extension positions are also slowing down the correction momentum. As long as gold remains within the price channel, the short-term technical outlook remains bullish.

The current downward corrections should be seen as an opportunity to buy. Notable locations will be listed as follows.
Support: 2,881 – 2,869USD
Resistance: 2,900 – 2,909USD

SELL XAUUSD PRICE 2931 - 2929⚡️
↠↠ Stoploss 2935

→Take Profit 1 2923
↨
→Take Profit 2 2917

BUY XAUUSD PRICE 2859 - 2861⚡️
↠↠ Stoploss 2855

→Take Profit 1 2867
↨
→Take Profit 2 2873

Note

⚫Spot gold prices hit a record high of 2,942.6 USD/ounce during the Asian trading session on Tuesday, continuing a strong upward trend from October 2023 with a total increase of 63% in 16 months.

Note

🔴Spot gold prices have increased by more than $20 in the short term and are currently trading at $2,891.64 an ounce.

Note

GOLD rises above $2,900 with further upside targets

Note

The US dollar index DXY is down more than ten points in the short term, down 0.50% on the day and currently at 107.46.

Trade active

Plan SELL +50pips close a part move SL to entry.🔥

6 days ago

Note

Spot gold prices reached $2,900 an ounce, up 0.60% on the day.

5 days ago

Note

After plummeting 1.6% last Friday, gold recovered to $2,900 an ounce on Monday on concerns about trade tensions under President Trump.

5 days ago

Note

Gold recovered positively towards $2,910

4 days ago

Note

Currently, the US Treasury Department's gold is still priced at 42.22 USD/ounce, much lower than the market price. If revalued, the value of gold mortgages could increase from $11 billion to about $750 billion.

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