GOLD - USD - Gold gains as US-China rhetoric grows louder - 01/17/2025 (GMT)

Gold pushed above $2,700 even in the aftermath of higher American inflation as traders widely expect inflation to accelerate further after new tariffs are introduced and sentiment remains very strong overall. Weaker than expected retail sales in the USA also gave some support to the metal.

There were two unsuccessful tests of the area around $2,720 in late November and mid December 2024, so this looks like a fairly strong resistance which might make the price pause at least if not retrace lower, especially in the current overbought conditions. If it manages to break through, there’s no other obvious resistance before the latest all-time high around $2,790.

The shrinking value area of the 20, 50 and 100 SMAs is an important dynamic support, while the 100% Fibonacci extension around $2,545 is even more important now that the 200 SMA is also in this area. However, another failed test of $2,720 seems more likely to lead to a retracement or consolidation than an immediate reversal into a downtrend. With no major data due from the USA next week, the traders are likely to concentrate on politics and particularly firm plans, if any, for tariffs.

This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.