The gold price (XAU/USD) fell to a two-week low of around $2,880 in the first half of the European trading session. A slight increase in U.S. Treasury yields has supported the U.S. dollar (USD), which moved away from its lowest level since December 10. Additionally, the positive sentiment in equity markets has reduced gold’s appeal as a safe-haven asset.
However, uncertainty surrounding U.S. President Donald Trump’s tariff plans and fears of a trade war call for caution among sellers, as these factors could limit further declines in gold prices. Furthermore, expectations that the Federal Reserve (Fed) will continue cutting interest rates due to signs of a slowing U.S. economy may also support non-yielding bullion.
Traders are now closely watching Thursday’s U.S. economic data releases, including the preliminary Q4 GDP print, durable goods orders, pending home sales, and weekly jobless claims, for further market direction.
Technical Outlook
The $2,888 level, reached last Tuesday, is expected to act as an immediate support, followed by $2,878 and then the $2,860–$2,855 zone. Failure to hold these levels could accelerate a corrective decline towards $2,834 and eventually the $2,800 mark.
On the upside, any break above $2,920 may attract sellers near the previous session's high of $2,930. A sustained rise beyond this level could push gold prices towards the $2,950–$2,955 resistance zone, which marks the record high reached earlier this week.