GOLD is under great pressure by the US DollarThe US Dollar Index soared again, which put pressure on OANDA:XAUUSD adding momentum to the adjustment momentum taking place in recent days.
Bloomberg said that after US President Donald Trump confirmed he would impose 25% tariffs on Canada and Mexico next week, currency traders bought the US Dollar, while currencies other than the USD were negatively affected, with the Canadian Dollar and Mexican Peso being hit the hardest. The soaring US Dollar is also detrimental to precious metals, commodities and digital currencies.
Trump said 25% tariffs on Canada and Mexico would take effect on March 4. He stated on his "Truth Social" account: "Drugs are still flowing into our country from Mexico and Canada in unacceptable quantities. We cannot let this scourge continue to hurt the United States, so until it stops or is tightly controlled, tariffs are proposed." with Canada and Mexico) scheduled to take effect on March 4 will actually take effect as planned."
Trump also said he would impose "reciprocity" tariffs of 25% on cars and other European goods.
OANDA:XAUUSD In recent times, it has still been going fast and strong, although fundamentally there are still many existing support risks, mainly due to profit-taking activities after a long period of price increases and the strong increase in the price of the US Dollar.
Thanks to the influx of money into safe havens, gold prices hit an all-time high of $2,956.15 an ounce on Monday after a rapid downward correction. Gold prices are clearly fluctuating, short-term fluctuations and some profit-taking are just a normal part of the cycle
Since the presidential election on November 5 of last year, the Dollar Spot Index has gained 6.62%.
Analysis of technical prospects for OANDA:XAUUSD
The medium-term uptrend of gold price is threatened when the sell-off momentum brings gold price below the price channel and EMA21, these are negative signals with the next support level being noticed at the price point of 2,835USD, more likely is the 0.382% Fibonacci retracement level.
Currently, the $2,880 level is the previous support turned resistance with the 0.236% Fibonacci retracement becoming the nearest resistance. On the other hand, the RSI tests the 50 mark. Once the RSI passes the 50 mark, this will be a warning of continued price decline because there is still room to fall with the RSI quite far from the oversold level.
As noted to readers in previous publications and short comments during the day, the downward correction will not stop easily before the original price point of 2,900 USD, so you must always be ready for stronger corrections when gold has had a very long period of technical increase.
Although gold has not yet formed a clear downtrend in the medium term, there is still room to fall ahead and notable positions will be listed as follows.
Support: 2,850 – 2,835 – 2,814USD
Resistance: 2,868 – 2,880 – 2,900USD
SELL XAUUSD PRICE 2911 - 2909⚡️
↠↠ Stoploss 2915
→Take Profit 1 2903
↨
→Take Profit 2 2897
BUY XAUUSD PRICE 2849 - 2851⚡️
↠↠ Stoploss 2845
→Take Profit 1 2857
↨
→Take Profit 2 2863
