Xauusd New Update 🚀 Gold rises towards $2,660
Yesterday, gold (XAU) rose by 1.32%, continuing an upward trend that started at the end of December.
👉 Possible effects for traders
Meanwhile, the U.S. Dollar Index (DXY) hit a new multi-year high of 109.530 on Thursday, limiting the potential gold gains. At recent Federal Reserve (Fed) meetings, the central bank indicated it would lower interest rates less aggressively than anticipated. This suggests a shift towards a more restrictive monetary policy. The more hawkish stance is driven by uncertainties surrounding the economic policies of the incoming Donald Trump administration.
According to several sources quoted by Axios, U.S. President Joe Biden has discussed the possibility of a military attack on Iran's nuclear facilities in case of unforeseeable circumstances. The U.S. is concerned that Iran could make significant progress in its nuclear program before Donald Trump's inauguration on 20 January, during the transition between administrations. Thus, geopolitical tensions are the main factor driving gold prices upwards. Following last year's significant XAUUSD growth, increased gold demand is expected further in 2025.
During the Asian trading session today, XAUUSD was moving within a narrow range. The price rose yesterday and hit the resistance level of $2,660, so now XAUUSD may correct towards the support level of $2,640. Today, the U.S. ISM Manufacturing Purchasing Managers' Index (PMI) report will come out at 3:00 p.m. UTC. A higher-than-expected figure may put downward pressure on gold, while weaker data may support XAUUSD upward trend.
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