Gold Prices Hold Steady Above $2700/oz Amid Trump 2.0 Inauguration

Gold prices have stabilized above the $2700/oz mark after an initial drop, indicating a potential upside. Historically, gold prices experienced a two-day rally followed by a decline after Trump’s 2017 inauguration, driven by safe-haven demand and uncertainty. Technically, gold seems to be in a “wait and see” mode, with a bounce off the $2700 level suggesting bullish momentum.

Markets are closely monitoring the proposed tariffs and policy changes under the new Trump administration. The return of Trump and potential tariff hikes have boosted the US Dollar, but uncertainties could lead to volatile price swings in the days ahead.

Golds Reaction to Trump 2.0

During Trump’s first term, gold prices initially rose post-inauguration before declining due to uncertainties surrounding his presidency. This time, with more support from Republicans, the US market may see less volatility. However, global markets remain on edge awaiting Trump’s decisions on tariffs, border control, and cryptocurrency.

High tariffs could temporarily impact gold prices, but safe-haven demand may persist amidst uncertainty. The week ahead may be overshadowed by Trump’s inauguration, potentially affecting various markets and instruments.

Technical Analysis Gold (XAU/USD)

From a technical standpoint, gold appears poised for further upside. The daily chart shows a bounce off the $2700 level, indicating a bullish continuation. A close above $2716 on the hourly chart could lead to a retest of 2024 highs.

Analysis and Breakdown

In summary, gold prices have stabilized above $2700/oz following Trump’s 2.0 inauguration. Historical data suggests a potential upside, but uncertainties surrounding tariffs and policy changes could lead to volatility. Technical analysis indicates a bullish trend, with a possible retest of previous highs. Investors should closely monitor market developments and remain cautious amidst potential price swings.