Gold Holds Above $2,760 as Investors Await U.S. Inflation & Fed Signals

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Gold prices traded within a tight range on Thursday, as investors weighed U.S. tariff policies and upcoming inflation data for monetary policy cues.

Spot gold held around $2,760, with traders reluctant to take strong positions ahead of the December Personal Consumption Expenditures (PCE) Index, set for release on Friday.

The Federal Reserve maintained interest rates on Wednesday, with Chair Jerome Powell signaling no rush to cut rates until inflation and jobs data indicate a clear shift. Since higher interest rates reduce gold’s appeal as a non-yielding asset, traders are waiting to assess the Fed’s next steps before making larger bets on bullion.

Meanwhile, geopolitical risks and ongoing tariff uncertainties are keeping gold demand intact. Market participants are closely monitoring potential White House tariffs on Mexico and Canada, set to take effect Saturday, while President Trump is also considering new levies on China.

 

XAU/USD

Central Banks & Investment Demand Drive Gold’s Outlook

Gold’s long-term trajectory depends on investment demand and policy shifts, according to Soni Kumari, a commodity strategist at ANZ. She believes gold needs stronger investor inflows to sustain a move toward $2,900 or $3,000, which would require a mix of inflation concerns, monetary easing, and geopolitical risks.

  • The European Central Bank (ECB) is widely expected to cut interest rates later in the day, opening the door for further monetary easing.

  • Demand for central bank gold loans has surged, particularly in London, as bullion traders hedge against trade uncertainties.

  • Increased gold deliveries to the U.S. amid tariff fears suggest a growing preference for physical bullion over paper assets.

If central banks continue easing policies, gold may find further support, particularly if economic uncertainty pushes more investors toward safe-haven assets.

Gold Price Forecast: Technical Levels to Watch

Gold (XAU/USD) is consolidating near $2,760.49, maintaining support above its 50-day EMA at $2,743.83. A bullish ascending trendline continues to guide prices higher, keeping sentiment positive.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart – Source: Tradingview
  • Immediate Resistance: $2,782.49 – A breakout could lead to $2,799.33 and $2,816.03.

  • Immediate Support: $2,743.83 (50-EMA) – A failure here could test $2,730.80 and $2,711.83.

  • Pivot Level: $2,748.89 – A critical level for confirming directional bias.

With gold trading near trend support, holding above $2,743.83 will be crucial for sustaining upward momentum. If buyers reclaim $2,782.49, bullish sentiment could accelerate. However, a break below $2,730.80 may shift the outlook toward further declines.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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