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MENAFN- Daily Forex)
In the past week, Gold prices were on the verge of their all-time highs, with spot gold prices reaching the resistance level of $2786 per ounce. The historical peak for gold was $2790 per ounce, which it reached in October 2024. The gold price index closed the week's trading at around $2772 per ounce. Overall, according to gold experts, prices have risen amid global uncertainty and growing concerns about inflation.
Trump's policies increase investors' concerns
Before Trump's inauguration, many economists warned that his policies could push inflation higher and harm global economic growth. But at a global event in Davos last week, he confused everyone, as he told world leaders and corporate executives at the World Economic Forum in Davos - via video - that he wanted to see lower global interest rates. This increased everyone's fears of a clash between Trump and Jerome Powell, the US Federal Reserve Governor, in the coming months, as the latter wanted to stop the pace of US interest rate cuts, fearing Trump's policies, which naturally raise inflation rates, which ultimately means tightening the US Federal Reserve's policies.
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Gold has a strong future globally, so be sure to trade gold without risk while continuously monitoring the factors affecting this market Decline in the US Dollar Supports the Gold Market
According to Forex trading, the US Dollar Index (DXY), which measures the performance of the US currency against a basket of major currencies, fell below the 107.40 level in the last trading session, extending its recent decline to its lowest level in more than a month. Also, its losses came as financial markets reconsidered the impact of the inflationary policies previously pledged by US President Trump.
US President reiterated his plans to expand energy production and liberalize business practices in his latest remarks at the World Economic Forum. Furthermore, refrained from confirming tariffs against China, limiting the risk of inflation for major commodities imported by the United States.
Meanwhile, economic data showed that US jobless claims rose to their highest level in more than three years in January, suggesting that the labour market is being affected by tighter monetary policy, despite remaining at historically strong levels.
Commenting on the outlook for the US dollar, Morgan Stanley currency experts warned that traders are increasingly looking for the right moment to sell the US dollar. Meanwhile, the company's forecast for the dollar is one of the most bearish among analysts and experts surveyed by Bloomberg. Also, bullish bets on the US dollar and the value of the currency itself have increased in the months since Trump won the presidential election in November.
According to Forex trading, the US dollar index has risen more than 3% since November 5, 2024, while derivatives traders held the equivalent of about $33.7 billion in long-term positions in dollars, according to data from the Commodity Futures Trading Commission as of January 21 - which is close to the highest level since 2019.
EURUSD Chart by TradingViewGold Price Technical Analysis and Expectations Today:
According to the performance on the daily chart above and according to the expectations of gold analysts today, the general trend for gold prices is still bullish and there may be a chance to break through the historical psychological resistance of $2,800 per ounce and beyond if the pressure on the US dollar from Trump's policies continues. Moreover, this summit will eventually lead to achieving the gold expectations for 2025 by moving towards the $3,000 per ounce peak. So far, the gold price outlook is strong, even if there is likely to be some volatility in the upcoming trading. In general, geopolitical and economic uncertainty should continue to support the upward trend in gold prices. Ultimately, gold prices may hold around their recent gains until the reaction to the US Federal Reserve's announcement this week.
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