XAUUSD - Gold awaits the Fed meeting!
Gold is above the EMA200 and EMA50 on the 4-hour timeframe and is in its ascending channel. If gold rises to the previous ATH, we can look for selling positions at the ceiling marked with the target of the bottom of the ascending channel. A correction of gold towards the demand zone will provide us with its next buying position.
Sergio Ermotti, CEO of UBS, has warned that the anticipated interest rate cuts could be delayed if Donald Trump’s second-term tariffs take effect and drive inflation higher.
Speaking with Andrew Ross Sorkin of CNBC, he stated:
“I have been saying for some time that inflation is far more persistent than we initially thought. The key question now is how tariffs will impact inflation.”
He further added:
“Tariffs are unlikely to help in reducing inflation. Therefore, I do not expect rates to drop as quickly as many anticipate.”
With Trump’s trade policies in play, the risk of rising inflation is high, and a major clash between Trump and the Federal Reserve over interest rate cuts seems inevitable. Such tensions could negatively impact the U.S. dollar.
Meanwhile, Scott Bessant, the newly appointed U.S. Treasury Secretary, is proposing a gradual global tariff plan starting at 2.5%, which will increase monthly and could reach up to 20%. This strategy aims to give businesses time to adjust to the new economic landscape. The Financial Times reported this plan, citing anonymous sources for details.
At the same time, the U.S.Senate has confirmed Scott Bessant as Treasury Secretary with a majority vote. This decision comes as Trump imposes a 25% tariff on imports from Colombia, reinforcing his aggressive trade policy stance.
The Federal Reserve’s monetary policy meeting is set to conclude today, and it is widely expected that interest rates will remain unchanged. However, analysts argue that gold markets are now focusing more on Trump’s policies rather than short-term aggressive monetary measures.
Gold prices rallied after Trump’s speech at the World Economic Forum in Davos, Switzerland. In a video address to global business leaders and policymakers, he urged central banks worldwide to cut interest rates. Trump stated:
“I am strongly calling for an immediate rate cut, and this must happen globally.”
Economists note that Trump’s remarks contradict the current economic reality, as a relatively strong economy continues to fuel persistent inflation. In recent weeks, the Federal Reserve has warned consumers about growing upside inflation risks and is seeking to shorten the current monetary easing cycle.
Ahead of this week’s policy meeting, markets expect the Fed to hold rates steady, with only one rate cut projected for this year.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, believes that the divergent views between Trump and the Federal Reserve have created uncertainty, benefiting gold as a safe-haven asset.
He further stated that the recent bullish momentum in the gold market suggests that the $2,800 price level may just be the beginning. Hansen concluded:
“As long as this uncertainty persists, I see no risk of overheating. Any downside break could trigger fresh buying interest.”
Sergio Ermotti, CEO of UBS, has warned that the anticipated interest rate cuts could be delayed if Donald Trump’s second-term tariffs take effect and drive inflation higher.
Speaking with Andrew Ross Sorkin of CNBC, he stated:
“I have been saying for some time that inflation is far more persistent than we initially thought. The key question now is how tariffs will impact inflation.”
He further added:
“Tariffs are unlikely to help in reducing inflation. Therefore, I do not expect rates to drop as quickly as many anticipate.”
With Trump’s trade policies in play, the risk of rising inflation is high, and a major clash between Trump and the Federal Reserve over interest rate cuts seems inevitable. Such tensions could negatively impact the U.S. dollar.
Meanwhile, Scott Bessant, the newly appointed U.S. Treasury Secretary, is proposing a gradual global tariff plan starting at 2.5%, which will increase monthly and could reach up to 20%. This strategy aims to give businesses time to adjust to the new economic landscape. The Financial Times reported this plan, citing anonymous sources for details.
At the same time, the U.S.Senate has confirmed Scott Bessant as Treasury Secretary with a majority vote. This decision comes as Trump imposes a 25% tariff on imports from Colombia, reinforcing his aggressive trade policy stance.
The Federal Reserve’s monetary policy meeting is set to conclude today, and it is widely expected that interest rates will remain unchanged. However, analysts argue that gold markets are now focusing more on Trump’s policies rather than short-term aggressive monetary measures.
Gold prices rallied after Trump’s speech at the World Economic Forum in Davos, Switzerland. In a video address to global business leaders and policymakers, he urged central banks worldwide to cut interest rates. Trump stated:
“I am strongly calling for an immediate rate cut, and this must happen globally.”
Economists note that Trump’s remarks contradict the current economic reality, as a relatively strong economy continues to fuel persistent inflation. In recent weeks, the Federal Reserve has warned consumers about growing upside inflation risks and is seeking to shorten the current monetary easing cycle.
Ahead of this week’s policy meeting, markets expect the Fed to hold rates steady, with only one rate cut projected for this year.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, believes that the divergent views between Trump and the Federal Reserve have created uncertainty, benefiting gold as a safe-haven asset.
He further stated that the recent bullish momentum in the gold market suggests that the $2,800 price level may just be the beginning. Hansen concluded:
“As long as this uncertainty persists, I see no risk of overheating. Any downside break could trigger fresh buying interest.”
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.
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.