Gold price rose on Monday, gaining 0.5% at the time of writing to trade at $2,950 per ounce at the spot market. The commodity has been on a strong uptrend since mid-December, and has risen by 12.4% year-to-date. Investors are still flocking to the safe haven asset as they seek to cushion themselves against the prevailing hostile trade tariff ecosystem instigated by the United States. Multiple institutional analysts like City and Goldman Sachs estimate that gold price will cross above $3,000 per ounce this year.
A Week of Multiple Volatility Triggers For Gold Price
The high tariff environment has seen the Federal Reserve adopt a hawkish interest rate stance, which will limit the gold price upside. However, the impact is likely to be countered by the heightened gold purchases by central banks across the world, keen on cushioning themselves against market risk factors. US Core Retail Sales data released last Friday signaled an existential weakness in the US economy, and that will supply tailwinds to gold price.
The world’s largest economy will release its Q4 2024 GDP figures on Thursday, and that will provide a broader perspective on the trajectory of the US economy, adding fresh impetus to the XAUUSD trading pair. Also, the January Personal Consumption Expenditure (PCE) figures will be out on Friday, revealing the impact of Donald Trump’s economic policies on the economy in the first month in office.
Gold Price Prediction
Gold price will likely continue with the upside if action stays above the pivot mark at $2,934. The upside momentum will likely meet the first hurdle at $2,950. However, an extended control by the buyers could break above that level and head higher to the second resistance at $2,960.
Alternatively, if the price breaks below $2,934, it will signal that the sellers are in control. That will likely see the first support come at $2,926. However, a stronger downward momentum will break below that level, invalidate the upside narrative, and potentially test the second support at $2,920.
