Gold Pops Above $4,710 as Tariff Fears and Fed Drama Keep Safe-Haven Demand Alive
Gold is still hanging strong over $4700 at the moment, trading at about $4712.975 in early European hours. The rally thats been driven...
Quick overview
- Gold is trading strong at approximately $4712.975, driven by safe-haven demand amidst geopolitical uncertainty.
- Silver has also seen gains, reaching $94.46 as investors seek refuge from economic caution.
- Key resistance levels for gold are at $4,735.833, while support is noted at $4,644.362.
- The US dollar's strength and Fed signals suggest a 95% chance of steady rates at the upcoming FOMC meeting.
Gold is still hanging strong over $4700 at the moment, trading at about $4712.975 in early European hours. The rally thats been driven by safe-haven demand is running up against a slightly stronger US dollar and fading hopes for any really aggressive Fed rate cuts in 2026.
Silver also made some gains, coming in at $94.46, up 0.15, as investors keep running for cover from geopolitical uncertainty and a pretty cautious outlook on the economy.
- Gold resistance: $4,735.833 – that’s the first big one to watch. Then $4,778.185 and $4,820.468 are the next hurdles.
- Gold support is at: $4,644.362 which is the safety net if prices drop, followed by $4,586.793 and $4,570.644.
Dollar Strength and Fed Signals
The US dollar bounced back this morning after a little dip last night thanks to good news on the labor market which has pushed back expectations for rate cuts til June or September. According to CME FedWatch, traders are now saying there’s a 95% chance the Fed will hold rates steady at the January 27-28 FOMC meeting.
Throwing some fuel on the fire is the news that President Trump has endorsed keeping Kevin Hassett in his current role – which is being seen as a possible sign of leadership changes at the Federal Reserve, and there’s a lot of speculation about what the future holds for Jerome Powell.
Geopolitics Keep Gold Attracting Attention
Okay so Iran has calmed down a bit now but thats still not to say were out of the woods yet – and the issue now is more with the energy infrastructure in Russia and Ukraine and also the fact that President Trump has threatened tariffs on eight European nations over Greenland – which has reignited those old fears of a US-EU trade war.
All of this has kept investors piling back into gold – which reinforces its status as a safe-haven asset in uncertain times.
Gold (XAU/USD) Technical Analysis is Looking Good For Bulls
The 2 hour chart for gold is showing a clear rising trend, with price action being supported by a nice crossover of the 50 and 200 period moving averages. And the RSI is currently at 70.72 which is actually a sign that things might be getting a bit overdone – which is usually a sign that a pullback or pause is coming before we see any further gains.
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