Gold prices remained stable on Friday, poised for an eighth consecutive weekly gain as ongoing concerns over U.S. President Donald Trump’s tariff threats continue to affect market sentiment.
Spot gold traded at $2,930, while U.S. gold futures were at $2,956.10, reflecting cautious optimism as investors seek safe-haven assets amid geopolitical and economic uncertainties. Earlier in the week, Trump announced plans for new tariffs, including on lumber and forest products, increasing fears of a trade war and fueling demand for gold as a protective investment.
Gold Technical Analysis: $2,922 Key Support Level
An analysis of the Gold Spot (XAU/USD) 1-hour chart suggests that gold prices are testing the critical support level of $2,922, with a potential bearish breakdown if prices fall further. Currently hovering around $2,930, gold is just below the 50-period Exponential Moving Average (EMA) at $2,935, which acts as resistance.
Key Technical Levels to Watch
- Support: $2,922 (Immediate), $2,895 (Secondary), $2,877 (Stronger)
- Resistance: $2,954 (Immediate), $2,972 (Key), $2,990 (Psychological)
A break above $2,922 could signal a bullish reversal, while a decisive break below may lead to further downside.
Geopolitical Risks and Federal Reserve Policies Influence Market Outlook
The gold market outlook is heavily influenced by geopolitical tensions and U.S. Federal Reserve policies. Rising inflation risks and trade uncertainties are key concerns, while the Fed’s stance on interest rates will also affect gold’s appeal. Traders should monitor upcoming economic data and Fed updates, as they will likely impact gold prices.
Swiss gold exports surged in January, underscoring strong demand for gold as a safe-haven asset amid global uncertainty.
Conclusion
Gold prices remain supported by safe-haven demand amid geopolitical risks and ongoing tariff concerns. Traders should keep a close eye on key technical levels, particularly the $2,922 support. A break below this could signal further downside, while a breakout above resistance levels could reignite bullish momentum. Geopolitical developments and Fed policies will continue to influence market trends and gold price movements in the near term.