Gold Price Closes to Record High in Feeble US Dollar

Gold nears all-time high, rises amid volatile US policy statements.
Trump’s WEF comments ease Chinese tariffs and advocate lower rates, weighing on the dollar.
The US dollar benchmark falls 0.62% to 107.44, weakening the greenback and increasing Gold’s hedge appeal.

The gold price extended its weekly gains, ready to challenge the $2,790 high sooner rather than later. United States (US) President Donald Trump’s comments could be the catalyst that pushes the yellow metal higher, although he surprised traders as he may refrain from making impressive commitments on Chinese products. XAU/USD is at USD 2,772, up 0.60%.

Market sentiment changed slightly negatively even as Trump softened his trade policy rhetoric towards allies and adversaries. By S&P Global U.S. data shows manufacturing activity improved in December while consumer sentiment deteriorated, the University of Michigan’s (UOM) final survey for January said.

But Trump’s tough rhetoric is not restricted to the trade deficit. At the World Economic Forum (WEF), he added that he would demand lower interest rates.

Following his remarks, Greenback fell and remains on the defensive, as seen by the US Dollar Index (DXY), which tracks the value of the US currency against a basket of six currencies. Decreases by 0.62% to 107.44.

Buck is expected to end the week with losses of 1.77% in US President Donald Trump’s first week in office.

Next week’s U.S. economic document will feature the release of tough goods orders, the Federal Reserve’s interest rate decision, gross domestic product (GDP) data and the Fed’s preferred inflation measure, basic personal consumption expenditures (PCE) price index (PCE) price index (PCE) .

Daily Digest Market Movers: Gold Price Rides Above $2,770 on Solid Data

The gold grew ignoring the progress of the real crop. As measured by the 10-year Treasury Inflation Protected Securities (TIPS), the yield is 2.23%, up one and a half basis points (BPS).
The U.S. 10-year Treasury yield moves two BP intraday at 4.625%.
PMI S&P Global U.S. Manufacturing PMI for December improved from 49.4 to 50.1, above the estimate of 49.6. Meanwhile, Services PMI dropped from 56.8 to 52.8, missing forecast 56.5
The University of Michigan Forjanuary consumer sentiment final expanded 71.1 below the estimate of 73.2 and the flash reading of 74.0.
Existing home sales in December increased by 2.2% MOM, from 4.15 million to 4.24 million.
Market participants are almost even pricing in one that the Fed will cut rates twice by the end of 2025, with the first reduction coming in June.

XAU/USD Technical Outlook: Gold Rise Above USD 2,770 as Bulls Target Ath Ath

The price rally is set to extend, but traders need to clear the record high of $2,790. Still, the formation of a bullish candle with a petite upper shadow indicates that traders are not accepting higher prices. This is further confirmed by the relative strength index (RSI) that has transformed over the breakout.

XAU/USD needs to break above all-time high (ATH) for bullish continuation. Once cleared, the next resistance would be $2,800, followed by key psychological levels exposed at $2,850 and $2,900.

Conversely, if it bears drag prices below $2,750, the number of 50- and 100-day plain moving averages (SMAs) appear as support levels, each at $2,656 and $2,653. If it is broken, the 200-day SMA at $2,520 lies upside.