- The edges of gold prices are higher in the Asian session on Friday.
- Fears of trade war and low American bonds support precious metal.
- Investors are preparing for retail sales data in January, which is scheduled to be known later on Friday.
The price of gold (Xau/USD) extends to the upper trend during the Asian trading hours on Friday. The increasing concerns about US President Donald Trump’s tariff plans provide some support for precious metals. In addition, the decrease in the decrease in American bonds through the curve contributes to the bullish direction of yellow minerals.
However, the expectation that the American Federal Reserve (Fed) will adhere to its right position and maintain the highest interest rate for a longer period that can pull the least unrestricted yellow metals. Traders will monitor the issuance of US retail sales for January, which is scheduled to be later on Friday.
Gold prices are drifting above fears of a global trade war
- Trump revealed a road map on Thursday to make mutual accusations against each country that imposes duties on American imports.
- However, trade and economics officials need to study mutual definitions against countries that put a customs tariff on American goods, and it will not be scheduled until April 1.
- The US Product Prices Index (PPI) increased by 3.5 % year on year in January, followed by an increase by 3.3 % seen in December, according to the US Labor Statistics Office on Thursday. This reading came above the market expectation by 3.2 %.
- The annual basic product price index increased by 3.6 % year on year in January, compared to 3.7 % (reviewed from 3.5 %) in advance, overcoming 3.3 % estimate.
- The unemployed demands for initial work in the United States decreased for the week ending February 8 to 213 thousand, compared to the previous week of 220 thousand (reviewed from 219 thousand), less than the consensus of the market of 215 thousand.
The wider gold price is still based, but RSI states that they mention caution for bulls
Technically, the price of gold maintains a strong upward trend on the daily time frame as the price exceeds the SISESERED for 100 days (EMA). However, the relative strength index remains for 14 days (RSI) in the peak area that exceeds 70.0 and requires some caution before putting any other gains.
The first bullish barrier of yellow minerals appears at the $ 2942 region-2943 dollars, representing the peak that was touched at all on Tuesday. The extended gains can be raised to $ 2955, which is the upper boundaries of the Bollegerer. The decisive break can pave the way for this level to the psychological level of $ 3,000.
On the other hand, the initial support level is seen at $ 2864, which is the lowest level on February 12. South, the additional negative side candidate to see is $ 2,744, the level of January 29. The level of decisive support is located in the 2,680-268 dollar area, represents the minimum Bollegerer and EMA for 100 days.
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of the risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate gold prices due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
