Gold Price Analysis: Preparing for Trump’s Inauguration
The gold price cracked $2,700 early Monday, setting the stage for a volatile trading session ahead of President-elect Donald Trump’s inauguration. As the US Dollar weakens amidst market optimism and easing tensions in the Middle East, gold traders are bracing for potential shifts in the market.
Factors Affecting Gold Price Movements
- Profit-taking on Gold-long positions ahead of Trump’s inauguration
- Easing of geopolitical tensions in the Middle East, including a ceasefire between Israel and Hamas
- Market optimism on progress towards a truce deal, leading to a mild bid under US Treasury bond yields
- Expectations of executive orders on immigration, energy, and government policies by Trump
- Potential stimulus efforts in China, the world’s biggest Gold consumer
- Anticipated interest rate cuts by the US Federal Reserve following tame December inflation data
Technical Analysis of Gold Price
The daily chart analysis of the gold price indicates:
- A symmetrical triangle breakout, supporting a bullish case
- Gold price holding above major daily moving averages, signaling potential buying opportunities
- The Relative Strength Index (RSI) above the midline, indicating positive momentum
- Key resistance levels at $2,726 and $2,750, with a target towards the record high of $2,790
- Potential support levels at $2,670, $2,653, and $2,745, where moving averages converge
Outlook for Gold Price
With two-way volatile price action expected, the holiday-thinned market conditions and speculations surrounding Trump’s executive orders could impact gold price movements. Traders should remain vigilant and monitor key levels for potential entry and exit points.