GOLD recovered after a 1.3% correction, paying attention to PCEOANDA:XAUUSD rose slightly on Wednesday (February 26), after a sharp 1.3% drop in the previous trading day, as traders took profits from a new record high set by gold.
Spot gold prices fell to their lowest level in more than a week yesterday as investors took profits after a period of gold prices reaching record highs amid ongoing concerns about instability caused by US President Trump's tax imposition plan.
OANDA:XAUUSD traded at nearly 2,915Dollar.oz, about $40 below the all-time high set on Monday.
Gold prices have been supported in recent days by weak U.S. economic data that raised expectations the Federal Reserve could cut interest rates in July, while President Donald Trump's growing tariff threats have increased safe-haven demand.
In addition, gold is also receiving renewed attention from gold ETFs. Last week ETFs saw their largest net inflows since 2022, according to Bloomberg data.
- The world's largest gold ETF, SPDR Gold Trust, increased its gold holdings by 0.29 tons compared to the previous day and the current gold holdings are 907.82 tons.
- The world's largest silver ETF - iShares Silver Trust reduced its holdings by 73.62 tons compared to the previous day and its current holdings are 13,655.67 tons.
Meanwhile, investors and economists expect the Fed to respond “robustly and systematically” to changes in inflation and the labor market, according to research released Monday by the San Francisco Federal Reserve. Rising inflation could force the Federal Reserve to maintain high interest rates, reducing the appeal of non-yielding gold.
Uncertainty over US President Donald Trump's use of tariffs as a negotiating tool has caused traders to become risk-averse. On Monday, Trump hinted that tariffs on imports from Mexico and Canada would take effect next week, even as both countries work to combat fentanyl and illegal immigration.
This week, key US data also includes durable goods orders, revised fourth-quarter GDP and the Federal Reserve's preferred measure of inflation, the core personal consumption expenditures (PCE) price index.
Analysis of technical prospects for OANDA:XAUUSD
After a shock correction in yesterday's trading session, gold recovered to maintain price activity above the original price level of 2,900 USD, which can be considered a positive signal when the downward momentum is limited.
Downside corrections can occur at “shock” levels, which have come to the attention of readers in many publications whenever the market has been up for a long period of time and the Relative Strength Index enters the overbought area. This can be considered normal market activity, because any type of asset that increases or decreases in price does not move in a straight line.
On the current daily chart, Gold still has bullish conditions with support from the trend channel and EMA21 as key support, on the other hand price activity above the $2,900 level also plays a positive role.
As long as gold remains in the price channel, above EMA21, its main prospective trend is still bullish, price drops should only be considered short-term corrections.
During the day, important positions will be highlighted as follows.
Support: 2,900 – 2,880USD
Resistance: 2,938 – 2,946USD
SELL XAUUSD PRICE 2941 - 2939⚡️
↠↠ Stoploss 2945
→Take Profit 1 2933
↨
→Take Profit 2 2927
BUY XAUUSD PRICE 2876 - 2878⚡️
↠↠ Stoploss 2872
→Take Profit 1 2884
↨
→Take Profit 2 2890
