As tariff uncertainty drove money into safe havens, tepid US inflation kept market expectations of a Fed rate cut intact and optimism over a ceasefire between Russia and Ukraine cooled, gold prices surged and broke out of their recent sideways consolidation range.
Gold prices surged past their target of $2,942/oz on safe-haven demand. Weaker US CPI also supported expectations of a Federal Reserve rate cut, pushing gold prices higher.
The US consumer price index (CPI) rose 2.8% year-on-year in February, slightly below the expected 2.9% and down from January's 3.0%. The year-on-year increase in the core CPI, which excludes volatile food and energy prices, eased to 3.1% from 3.3% in January.
Recent news of a ceasefire between Russia and Ukraine also cooled earlier optimism. British news agency Reuters reported on Wednesday that Russian officials were skeptical about a US proposal for a 30-day ceasefire in Ukraine. Kremlin spokesman Dmitry Peskov said on Wednesday that the Kremlin was still waiting for the US to announce its proposal for a ceasefire in Ukraine. The Kremlin needs to hear the results of the US-Ukraine talks before commenting on whether Russia can accept the ceasefire.
Commenting on a ceasefire proposal accepted by both U.S. and Ukrainian officials, an influential Russian lawmaker insisted on Wednesday that any deal would have to be reached on Russian terms, not U.S. ones.
A senior Russian source said President Vladimir Putin would be unlikely to agree to a ceasefire proposal without finalizing the terms and receiving some guarantees.
Ukraine on Tuesday accepted a U.S. proposal for a 30-day ceasefire with Russia in exchange for the Trump administration resuming suspended military aid and intelligence sharing. The deal was announced by U.S. and Ukrainian officials after eight hours of talks in Saudi Arabia on Tuesday.
Trump said U.S. officials would meet with their Russian counterparts on Wednesday and that he would likely meet with Russian President Vladimir Putin this week.
The World Gold Council (WGC) revealed that central banks continue to buy gold. The People's Bank of China and the National Bank of Poland added 10 tonnes and 29 tonnes of gold respectively in the first two months of 2025.
Trading traders will be closely watching the release of the US producer price index (PPI) for February, initial jobless claims and the University of Michigan consumer sentiment data.
Gold Price Technical Outlook Analysis
XAUUSD
On the daily chart, as of the time of writing, gold has achieved all the bullish targets noted by readers in the weekly publication, along with all the conditions for a possible price increase as there is no resistance ahead other than the all-time high.
The short-term price channel (b) is the trend at the moment, along with the Relative Strength Index (RSI) remaining above 50, rising above 61, indicating that the bullish momentum dominates the market and there is still a lot of room for upside as it is still quite far from reaching the overbought zone.
The most notable supports at the moment are the short-term level of $2,929, followed by the 21-day moving average (EMA21) area.
Overall, the uptrend is dominating on the daily chart, with notable price levels listed below.
Support: $2,929 – $2,915
Resistance: $2,956
Gold prices surged past their target of $2,942/oz on safe-haven demand. Weaker US CPI also supported expectations of a Federal Reserve rate cut, pushing gold prices higher.
The US consumer price index (CPI) rose 2.8% year-on-year in February, slightly below the expected 2.9% and down from January's 3.0%. The year-on-year increase in the core CPI, which excludes volatile food and energy prices, eased to 3.1% from 3.3% in January.
Recent news of a ceasefire between Russia and Ukraine also cooled earlier optimism. British news agency Reuters reported on Wednesday that Russian officials were skeptical about a US proposal for a 30-day ceasefire in Ukraine. Kremlin spokesman Dmitry Peskov said on Wednesday that the Kremlin was still waiting for the US to announce its proposal for a ceasefire in Ukraine. The Kremlin needs to hear the results of the US-Ukraine talks before commenting on whether Russia can accept the ceasefire.
Commenting on a ceasefire proposal accepted by both U.S. and Ukrainian officials, an influential Russian lawmaker insisted on Wednesday that any deal would have to be reached on Russian terms, not U.S. ones.
A senior Russian source said President Vladimir Putin would be unlikely to agree to a ceasefire proposal without finalizing the terms and receiving some guarantees.
Ukraine on Tuesday accepted a U.S. proposal for a 30-day ceasefire with Russia in exchange for the Trump administration resuming suspended military aid and intelligence sharing. The deal was announced by U.S. and Ukrainian officials after eight hours of talks in Saudi Arabia on Tuesday.
Trump said U.S. officials would meet with their Russian counterparts on Wednesday and that he would likely meet with Russian President Vladimir Putin this week.
The World Gold Council (WGC) revealed that central banks continue to buy gold. The People's Bank of China and the National Bank of Poland added 10 tonnes and 29 tonnes of gold respectively in the first two months of 2025.
Trading traders will be closely watching the release of the US producer price index (PPI) for February, initial jobless claims and the University of Michigan consumer sentiment data.
Gold Price Technical Outlook Analysis
XAUUSD
On the daily chart, as of the time of writing, gold has achieved all the bullish targets noted by readers in the weekly publication, along with all the conditions for a possible price increase as there is no resistance ahead other than the all-time high.
The short-term price channel (b) is the trend at the moment, along with the Relative Strength Index (RSI) remaining above 50, rising above 61, indicating that the bullish momentum dominates the market and there is still a lot of room for upside as it is still quite far from reaching the overbought zone.
The most notable supports at the moment are the short-term level of $2,929, followed by the 21-day moving average (EMA21) area.
Overall, the uptrend is dominating on the daily chart, with notable price levels listed below.
Support: $2,929 – $2,915
Resistance: $2,956
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🪙 JOIN OUR FREE TELEGRAM GROUP 🪙
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️🥇 Exchange and learn market knowledge
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t.me/tradingchampionschannelJoin the community group to get support and share knowledge!
️🥇 Exchange and learn market knowledge
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️🥇 Zalo Group: zalo.me/g/hydlwv957
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.