Gold has strengthened due to a weakening dollar, and Institutions are paying attention to Trump's trade policy.
On Monday, gold prices strengthened due to a weakening dollar, with investors waiting for Trump's inauguration speech later that day to understand his policies, which are expected to provide clear information on the inflation outlook and the Federal Reserve's future interest rate decisions.
Technical analysis and review of spot Gold on January 20.
On Monday (January 20), during the European trading session, there was a slight increase, with Gold trading around 2711 USD. In the recap from Friday, it was mentioned that the short-term price testing 2700 USD did not hold, indicating a demand for a pullback to 2700 USD. During the Asian trading session, the lowest tested was around 2690 USD, and the short-term adjustment has not ended, likely continuing with range-bound fluctuations. Fundamentally, the strong dollar expectation may be too optimistic, and a possibility exists that the bullish sentiment may have peaked, leading to a potential adjustment in the dollar. Therefore, Gold prices gained a brief rebound window, but it needs to be noted that the bullish support from the fundamentals is not obvious, and the safe-haven sentiment's support for Gold prices has weakened, maintaining a Range.
Gold Price Climbs Above $2,700; Upside Seems Limited Ahead of Trump's Inauguration
Gold Trade Reminder: USA economic data helps stabilize US bond yields, gold prices are under pressure waiting for the "Trump inauguration."
On Monday, Trump will hold his inauguration ceremony, and he may announce a series of new policies that investors need to pay close attention to.
Gold Market Weekly Review: Expectations for a Federal Reserve interest rate cut are reignited, and gold prices rise above the key level of $2,700, awaiting Trump's inauguration.
Gold prices were pressured by the rise of the dollar on Friday, but still achieved an increase for the week. The uncertainty of the policies of the new president of the USA, Trump, and renewed bets on further interest rate cuts have raised gold prices above the key level of 2,700 dollars. Spot gold fell 0.45% to 2,702.35 dollars per ounce; U.S. futures gold fell 0.1% to 2,748.70 dollars. David Meger, head of Metal Trade at High Ridge Futures, said: "Today's pullback is not significant; rather, it is more about profit-taking, perhaps aided by a slight rise in the dollar during the day, increasing the...
Technical analysis and review of spot Gold on January 17.
On Friday (January 17), during the European trading session, there was a slight decline, with Gold trading around $2713. It was mentioned in yesterday's review that once the price stands above $2700, there will be an inertia increase, but there is relatively limited space above. A pressure test at $2720 has already been completed, and there is a risk of a pullback during the day. On the fundamental side, comments from Federal Reserve officials have boosted expectations for interest rate cuts, but this is not the primary factor for Gold's increase. In the short term, the negative correlation between the US dollar and Gold has returned. Additionally, as risk aversion sentiment increases, the uncertainty surrounding policies before the inauguration of the new US president is driving up risk aversion sentiment, maintaining a fluctuation upward during the day, waiting for confirmation of a pullback to $270.