Gold price forecast remains stable above the $2,760 mark as traders await the Federal Open Market Committee (FOMC) decision. Despite the previous day’s gains, the precious metal moves within a narrow range during the European session. A positive trend in equity markets restrains further gains, while speculation about the Federal Reserve’s potential rate cuts in 2025, declining US Treasury bond yields, and a weakening US Dollar (USD) provide support. Investors remain cautious ahead of the Fed’s monetary policy announcement, which could shape the near-term outlook for gold prices.
Market Sentiment and Gold Price Movement
The overall market sentiment remains mixed, preventing gold from gaining strong momentum. The declining US Treasury yields and expectations of a Fed rate cut in 2025 provide a supportive environment for the non-yielding asset. However, the risk-on mood in the stock markets acts as a limiting factor, keeping gold in a consolidation phase.
Additionally, concerns regarding US President Donald Trump’s proposed tariffs on key imports, including pharmaceuticals, aluminum, steel, and computer chips, add to market uncertainty. These potential trade restrictions may trigger global trade conflicts, enhancing gold’s appeal as a safe-haven asset.
Key Economic Indicators and Gold’s Response
Several recent economic data releases have also played a role in influencing gold prices:
- The US Census Bureau reported a 2.2% decline in Durable Goods Orders for December, worse than the expected 0.8% increase.
- The Consumer Confidence Index dropped to 104.1 in January from 109.5 in the previous month, indicating weaker consumer sentiment.
- The Present Situation Index also decreased to 134.3, signaling growing concerns about the economic outlook.
These figures add to the uncertainty surrounding the US economy, making gold an attractive hedge against potential economic downturns.
Gold Price Forecast and Key Technical Levels
Resistance and Upside Potential
From a technical perspective, gold maintains an upward trajectory after surpassing the $2,720–2,725 resistance zone. If the price moves past the $2,772–2,773 region, it could extend gains toward the $2,786 mark, the highest level since October 2024. A sustained push above $2,800 may trigger fresh buying interest, potentially propelling gold toward the all-time high near $2,970.
Support Levels to Watch
On the downside, immediate support is seen at $2,755–2,753, where buyers might re-enter the market. A break below this level could lead to further declines toward the $2,730 region. If selling pressure persists, gold may drop to the $2,707–2,705 area, with further losses extending toward the $2,684 mark.
Conclusion
Gold remains steady above $2,760 as traders closely watch the FOMC’s policy decision. Market participants anticipate signals on future rate cuts and their potential impact on USD strength. Ongoing concerns over US trade policies and weaker economic data also influence investor sentiment. Given these factors, gold is likely to see increased volatility in the coming sessions.
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