- summary:
- Momntum has been cooled in gold prices recently, but customs tariff morale keeps the price of $ 3,000 at hand.
The price of gold rose on Monday, when it was traded at $ 2900 in the spot market after getting 0.5 %. The bullish trend of yellow minerals is supported by crosses over the tariff war that has not been resolved in the United States and some of the world’s largest economies, including China, Canada and Mexico.
Feelings of customs tariffs continue to exert down pressure on the US dollar despite relatively stable economy data. President Donald Trump announced a new set of definitions against aluminum and steel imports last week, neutralizing the good intentions that were created by the initial comment on the previous tariff imposed against Canada.
Trump has also announced the intention to impose a mutual tariff against some trade partners in the United States, who are seen as a “unfair” commercial surplus. This has placed the way for a possible continuation of the upper part of the gold price. Meanwhile, UBS raised its target price for the commodity, noting that it may reach $ 3200 in 2025 before settling at higher levels. This 10 % increase explodes on the current price.
The most prominent thing in the week will be the release of Wednesday in January FOMC, which will provide Pessepty on interest in the federal reserve in the high ecosystems. Also, Trump is expected to spoil the “mutual definitions” plan, which can pump fresh fluctuations into the price of gold. Elsewhere, the start of talks between Russia and Ukraine can form the geopolitical premium on the commodity.
Gold price prediction
The gold price axis at $ 2,893 and the upward trend will continue if the procedure remains above this level. However, the next barrier is likely to be $ 2,908. However, the strongest momentum will break this level and may test $ 2,920.
On the other hand, the transition to less than $ 2,893 will indicate a transformation in the momentum to the negative side. This first support that was created at $ 2,878 can witness. The bullish direction would be invalid if the price is less than this level. However, the control by sellers can test the second support at $ 2867.
