- A positive start to this important week for gold prices, as the gold price index rose to the resistance level of $2876 per ounce, supported by the continuation and expansion of the Russian Ukrainian war after Trump failed to reach a deal with the Ukrainian president last week to end the conflict.
- This is in addition to the increased certainty regarding the impact of US tariffs.
- According to gold trading companies’ platforms, spot gold prices fell last week to the support level of $2832 per ounce, the lowest price in nearly a month, giving up the gains of the peak of $2957 per ounce, the highest in the history of the gold price in the same week.
Will the price of gold rise in the coming days?
Keep in mind that despite recent losses, the strongest trend for gold is still upward. Gold prices may rise in the coming days, as the tariffs proposed by Trump on Mexican and Canadian goods, which are scheduled to take effect on March 4, along with additional 10% duties on Chinese goods, have fuelled concerns about potential retaliatory measures and broader trade tensions.
The impact of rising global inflation rates on these measures is also supporting the gold bullion market, which is often seen as a hedge against rising prices. Adding to its appeal, the US dollar has retreated from a two-week high, making gold less expensive for holders of other currencies. Moreover, renewed concerns about the health of the US economy have boosted market expectations for a rate cut by the Federal Reserve, increasing the appeal of bullion as a non-yielding asset.
Trading Tips:
We still recommend buying gold from every downward level. Moreover, without risk, and it is better to distribute the trading volume over several purchase deals from different levels.
Gold Experts’ Forecasts for Future Prices:
After the recent sell-off, gold analysts’ expectations for future prices varied. In this regard, two forecasts were received from analysts at Saxo Bank, describing the recent price action as a late correction. They added that gold could move towards support at around $2,800 per ounce. At the same time, they expect silver prices to fall below $31 per ounce. They said: “Where gold goes, silver follows, but often at a faster pace.” “Some attention should be paid to the 0.5 and 0.618 Fibonacci retracement levels at $31.08 and $30.54, with the latter also being the 200-day moving average. Overall, we see this as a healthy correction ahead of a fresh push towards $3,000 and beyond for gold and silver moving towards the upper $30s.”
Despite the decline, many gold analysts said that the selloffs caused only limited technical damage to gold. They stated, “So far, it’s a routine pullback, and I’m not worried. It could pull back and retest support at $2800, which was the high in late October.” “If it closes, for any reason, at $2800, we will take a more defensive stance that applies to mining stocks and short-term trading positions, but not to our physical bullion holdings.”
Furthermore, they pointed out that it is difficult to be explicitly bearish on gold with continued upward pressure on inflation and the continued weakness of the US economy.
Gold Price Technical Analysis and Expectations Today:
Based on the performance on the daily chart, gold prices are trying to recoup losses from recent selling operations and stability around and above the resistance of $2,900 per ounce will remain the most important for the stronger bulls to control the trend again. Until that happens, the support levels of $2,855, $2,848 and $2,825 per ounce will remain the most important for the bears, which in turn will reinforce the technical indicators’ movement towards strong oversold levels. Technically, the gold market will be affected in the coming period by the reaction to Trump’s trade and political policies. Obviously, gold is a traditional safe haven for markets and investors in times of uncertainty. This is in addition to the reaction to the announcement of US jobs numbers at the end of the week, which in turn will affect the future policies of the US Federal Reserve.
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