Gold price trends faces growing selling pressure near the $2,700 level on Friday. This comes after a three-day rally earlier this week, with traders locking in profits. Comments from Federal Reserve (Fed) Governor Christopher Waller on Thursday sparked uncertainty. Waller suggested a possible interest rate cut in March, catching traders off guard as the markets had not anticipated this move.
Gold Market Updates Concerns Grow Amidst Uncertainty
Traders are increasingly worried about missing critical market signals. These concerns have intensified as the new U.S. administration prepares to introduce a series of executive orders, potentially driving inflation higher. Such developments could trigger unexpected market reactions and create volatility in the gold price trends.
Daily Gold Market Updates
Gold prices surged to record highs last year, driven by the Fed’s interest rate cuts, central banks’ gold purchases, and heightened geopolitical tensions. UBS Group AG recently projected further gains in gold price forecast this year, citing persistent trade and geopolitical risks, as reported by Bloomberg.
Key Updates to Watch:
- Commitment of Traders Report: The Commodity Futures Trading Commission (CFTC) will release its weekly report at 20:30 GMT. Last week’s report showed a rise in speculative positions, reaching $254.9K from $247.3K the previous week.
- US 10-Year Yield: Currently trading around 4.568%, this yield is lower than its weekly high of 4.807% recorded on Tuesday.
Technical Analysis: Key Levels to Monitor
Fed Governor Waller’s remarks about a potential March rate cut have unsettled gold bulls. The prospect of an earlier-than-expected rate cut has raised questions about the Fed’s outlook on the U.S. economy.
Important Price Levels:
- Support Levels: If gold price trends falls below $2,708, traders should look for support at $2,671. Further declines may target the 55-day Simple Moving Average (SMA) at $2,648 or the 100-day SMA at $2,643.
- Resistance Levels: The immediate upside level is $2,721, marking a double top from November and December. A break above this could lead to a test of the all-time high at $2,790.
Gold prices remain a focal point for traders navigating market uncertainty. Stay updated with reliable resources to make informed decisions. For more daily insights, check out our Daily Gold Signal page. You can also explore our Daily Gold Update category for detailed analysis.
