Gold Prices— Bearish Reversal Targets $2,746.58 Amid Fed Uncertainty
- Gold fell 2.66% last week, closing at $2,858.14—its first weekly decline in over two months. A stronger U.S. dollar and concerns over delayed Fed rate cuts fueled selling pressure, while global trade tensions failed to lift safe-haven demand for bullion.
- The Personal Consumption Expenditures (PCE) index rose 0.3% in January, with core PCE up 2.6% year-over-year, slightly lower than December’s 2.7%. While markets still price in a 79% chance of a June rate cut, the Fed’s cautious approach has dimmed gold’s appeal as a non-yielding asset.
Trade Tensions Boost Dollar, Not Gold
- Despite rising global trade risks, investors sought refuge in the U.S. dollar rather than gold. The dollar index climbed nearly 0.9%, hitting a two-week high after President Trump reaffirmed tariffs on Mexican, Canadian, and Chinese imports. The stronger dollar made gold more expensive for foreign buyers, further pressuring demand.
More Downside Before a Rebound!
- Gold remains fundamentally strong due to central bank demand, inflation risks, and geopolitical uncertainties. However, technical signals suggest a deeper pullback. A break below $2,832.72 would confirm a bearish reversal, targeting $2,746.58 in the coming weeks.
- A meaningful rebound may require softer U.S. economic data, a more dovish Fed, or heightened geopolitical tensions. Until then, gold could stay under pressure as investors favor cash and the dollar over bullion.
- Gold fell 2.66% last week, closing at $2,858.14—its first weekly decline in over two months. A stronger U.S. dollar and concerns over delayed Fed rate cuts fueled selling pressure, while global trade tensions failed to lift safe-haven demand for bullion.
- The Personal Consumption Expenditures (PCE) index rose 0.3% in January, with core PCE up 2.6% year-over-year, slightly lower than December’s 2.7%. While markets still price in a 79% chance of a June rate cut, the Fed’s cautious approach has dimmed gold’s appeal as a non-yielding asset.
Trade Tensions Boost Dollar, Not Gold
- Despite rising global trade risks, investors sought refuge in the U.S. dollar rather than gold. The dollar index climbed nearly 0.9%, hitting a two-week high after President Trump reaffirmed tariffs on Mexican, Canadian, and Chinese imports. The stronger dollar made gold more expensive for foreign buyers, further pressuring demand.
More Downside Before a Rebound!
- Gold remains fundamentally strong due to central bank demand, inflation risks, and geopolitical uncertainties. However, technical signals suggest a deeper pullback. A break below $2,832.72 would confirm a bearish reversal, targeting $2,746.58 in the coming weeks.
- A meaningful rebound may require softer U.S. economic data, a more dovish Fed, or heightened geopolitical tensions. Until then, gold could stay under pressure as investors favor cash and the dollar over bullion.
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♛ Website: bio.site/goldfxcc.com
➤ Telegram: t.me/+OYfvKDvM0w81MTJk
♛ Website: bio.site/goldfxcc.com
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.
GOLDFXCC™ Leading Educational platform—whether you're just starting or an experienced trader, access knowledge and insights to refine your skills and achieve more.
➤ Telegram: t.me/+OYfvKDvM0w81MTJk
♛ Website: bio.site/goldfxcc.com
➤ Telegram: t.me/+OYfvKDvM0w81MTJk
♛ Website: bio.site/goldfxcc.com
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.