Gold price (XAU/USD) is gaining momentum as it resumes its upward trend, reaching $2,920 on Thursday. Traders are overlooking the latest US Consumer Price Index (CPI) data and potential peace talks between US President Donald Trump and Russian President Vladimir Putin. Despite these developments, Gold continues to rally, highlighting its role as a safe-haven asset.
Gold Price Resilience Amid Market Uncertainty
Gold prices are climbing despite significant market risks. The US CPI data for January, released on Wednesday, showed inflation remains persistent. However, traders are more focused on the ongoing discussions between the US and Russia regarding Ukraine. These talks could shape global markets, but Gold’s upward trend suggests strong investor confidence in its stability.
Federal Reserve Chairman Jerome Powell’s recent testimonies have also influenced market sentiment. His comments indicate that the Fed may keep interest rates steady for longer, which supports Gold’s appeal. Rising US yields typically pressure Gold price, but the current rally suggests a unique market dynamic.
Key Market Movers: US-Russia Talks and Fed Policy
The possibility of a peace deal between the US and Russia is a major focus for traders. President Trump and President Putin have discussed a meeting to outline a potential agreement. While this could reduce geopolitical tensions, Gold’s rally indicates that traders remain cautious.
Meanwhile, the US Dollar Index (DXY) is softening, which benefits Gold. When the dollar weakens, Gold becomes more appealing to buyers in international markets. Additionally, NATO’s recent meeting has sparked debates among European countries, further influencing market sentiment.
The CME FedWatch tool shows a 64.3% chance that interest rates will remain unchanged in June. This reflects the Fed’s commitment to combating inflation, which supports Gold’s position as a hedge against economic uncertainty.
Technical Analysis: Support and Resistance Levels
Gold traders are using the latest CPI data as an opportunity to increase their stakes. However, the ongoing Ukraine peace talks pose a significant risk. If these talks gain traction, a risk-on wave could lead to outflows from safe-haven assets like Gold.
On Thursday, the first support level for Gold is 2,892,followedbyS1at2,892,followedbyS1at2,875 and S2 at 2,847.Theselevelsactassafeguardsagainstfurtherdeclines.Ontheupside,R1resistanceisat2,847.Theselevelsactassafeguardsagainstfurtherdeclines.Ontheupside,R1resistanceisat2,920, with R2 at 2,937.Iftherallycontinues,Goldcouldtestthe2,937.Iftherallycontinues,Goldcouldtestthe2,950 and $3,000 levels.
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