XAUUSD 1D Idea
Trump’s call for lower interest rates at the World Economic Forum added to the dollar’s slide. A weaker greenback enhances gold’s appeal by making it more affordable for foreign buyers, further boosting its demand.
Tariff and Trade Uncertainty Lend Support
Trump’s rhetoric on trade, including a potentially “friendly” resolution with China, has left traders sceptical about the extent of future tariffs. Markets now anticipate announcements on tariffs targeting Canada, Mexico, China, and the European Union by February 1, diverting attention away from the upcoming Federal Reserve meeting. Expectations that the Fed will keep rates unchanged next week also bolstered gold’s attractiveness in a low-yield environment.
Inflation and Instability Keep Gold in Demand
Gold’s role as a reliable inflation hedge remains pivotal in this uncertain climate. With zero-yield assets like gold gaining favor during periods of economic instability, traders continue to position for potential central bank accommodation and elevated price levels. A short-covering rally has further amplified gains, though ETF flows remain mixed as traders weigh near-term catalysts.
Gold Prices Forecast: Testing Record Highs
Gold’s bullish momentum suggests a retest of its all-time high of $2,790.17 could be imminent. Continued weakness in the dollar, coupled with uncertainty surrounding tariffs and trade policy, provides a favorable backdrop for further upside. Traders should monitor tariff announcements and shifts in risk sentiment as key drivers of price action in the week ahead.
Tariff and Trade Uncertainty Lend Support
Trump’s rhetoric on trade, including a potentially “friendly” resolution with China, has left traders sceptical about the extent of future tariffs. Markets now anticipate announcements on tariffs targeting Canada, Mexico, China, and the European Union by February 1, diverting attention away from the upcoming Federal Reserve meeting. Expectations that the Fed will keep rates unchanged next week also bolstered gold’s attractiveness in a low-yield environment.
Inflation and Instability Keep Gold in Demand
Gold’s role as a reliable inflation hedge remains pivotal in this uncertain climate. With zero-yield assets like gold gaining favor during periods of economic instability, traders continue to position for potential central bank accommodation and elevated price levels. A short-covering rally has further amplified gains, though ETF flows remain mixed as traders weigh near-term catalysts.
Gold Prices Forecast: Testing Record Highs
Gold’s bullish momentum suggests a retest of its all-time high of $2,790.17 could be imminent. Continued weakness in the dollar, coupled with uncertainty surrounding tariffs and trade policy, provides a favorable backdrop for further upside. Traders should monitor tariff announcements and shifts in risk sentiment as key drivers of price action in the week ahead.
Trade active
XAUUSD Moving well +150pipsTrade closed: target reached
XAUUSD reached +1000pips 
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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.
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.