Gold Price Analysis: Trump Tariffs Spark Flight to Safety
The gold price experienced a significant dip earlier this week, hitting a low of $2,605, before rebounding on the back of Trump’s tariff announcements. The impending Bear Cross on the daily chart and bearish RSI are cautioning gold buyers, but all eyes are now on the Fed Minutes for further guidance.
Factors Influencing Gold Price Movement
- Trump’s announcement of tariffs on Mexico, Canada, and China sparked a flight to safety, boosting gold demand.
- Global trade war concerns are driving safe-haven flows into the US Dollar and gold.
- Market expectations of a December interest rate cut are at 61% based on CME Group’s FedWatch Tool data.
- Geopolitical tensions between Israel and Lebanon are easing, affecting gold’s safe-haven appeal.
Technical Analysis on Gold Price
Gold is currently consolidating near $2,625, with an impending Bear Cross on the daily chart raising concerns among buyers. The 21-day SMA is approaching a crossover with the 50-day SMA, signaling a potential downtrend. Additionally, the RSI is below 50, indicating bearish momentum.
- Support levels: $2,605, $2,566, $2,537
- Resistance levels: $2,667, $2,700, $2,721
Economic Indicator: FOMC Minutes
The Federal Open Market Committee (FOMC) organizes 8 meetings annually to review economic conditions and set monetary policy. The upcoming release of FOMC Minutes will provide insights into future US interest rate policy.
Next Release: Tue Nov 26, 2024 19:00
Frequency: Irregular
Consensus: –
Previous: –
Source: Federal Reserve
Stay tuned for the FOMC Minutes release for potential impacts on gold price movements.
Analysis:
The gold price analysis highlights the impact of geopolitical events, trade tensions, and interest rate expectations on gold’s performance. Understanding these factors is crucial for investors looking to navigate market volatility and make informed decisions. The upcoming FOMC Minutes release will provide further clarity on the future direction of US interest rates, influencing gold price movements. Keeping track of these developments is essential for anyone with a vested interest in financial markets and their implications for personal wealth management.