Gold Prices Target $2,800 Amid Fed Meeting and Market Volatility
Gold prices remained stable on Tuesday, trading at $2,738.90 per ounce as of 0230 GMT, with U.S. gold futures rising 0.2% to $2,743.10.
Investors are closely monitoring the U.S. Federal Reserve’s upcoming policy decision, where interest rates are expected to remain unchanged. However, President Donald Trump’s push for rate cuts could influence future monetary policy.
Tim Waterer, Chief Market Analyst at KCM Trade, noted, “If Jerome Powell hints at potential rate cuts, this could lower treasury yields and bolster gold.” Waterer added that $2,800 is a feasible near-term target for gold, given its appeal in low-interest-rate environments.
Meanwhile, market sentiment was subdued after Monday’s sell-off, triggered by a low-cost Chinese AI model that rattled broader markets.
Gold Technical Outlook: Key Levels to Watch
Gold faces critical technical levels after breaking below its upward trendline at $2,745. The 50-day EMA at $2,749.58 acts as resistance, signaling caution for bullish traders.
- Support Levels: Immediate support is seen at $2,721.30, with further declines targeting $2,703.72 and $2,689.31.
- Resistance Levels: On the upside, gold faces resistance at $2,763.13, followed by $2,782.49 and $2,797.09.
A confirmed close below $2,745 could signal bearish momentum, while reclaiming this level might stabilize prices. Traders should monitor the pivot point for cues on short-term direction.
Global Market Trends Impacting Gold
China’s net gold imports via Hong Kong fell 84% in December, reaching their lowest since April 2022. This decline highlights weakening physical demand, even as global uncertainty supports speculative interest in gold.
Elsewhere, palladium and platinum faced downgrades in price forecasts for 2025 due to tepid demand. Palladium prices slipped 0.4% to $957, while platinum dropped 0.4% to $943.35. Russia’s Nornickel reported a 3% year-on-year increase in palladium production, totaling 2.762 million ounces in 2024.
In contrast, silver edged lower by 0.4%, trading at $30.07 per ounce.
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