Gold prices remained largely unchanged late in the North American session, trading near $3,019 as the US Dollar Index (DXY) recovered from a low of 104.18. The rebound in the greenback was spurred by reports from the White House, indicating that President Donald Trump would announce automobile tariffs at approximately 22:00 GMT. At the time of writing, XAU/USD showed minimal movement, virtually flat from earlier levels.
Gold traders struggled to gain momentum despite headlines suggesting that Trump might announce limited tariffs, including automotive tariffs, as reported by The Wall Street Journal. Meanwhile, the DXY rose 0.32% to 104.55, reflecting the strengthened dollar.
Despite the pressure on gold, the precious metal remains firmly above the $3,000 support level, maintaining the optimism of buyers hoping for higher prices.
Market News and Data:
The US Department of Commerce reported solid results for February’s Durable Goods Orders, with a 0.9% increase, surpassing expectations of a 1% decline. Core Durable Goods Orders, excluding transportation, also showed resilience, rising 0.7% month-over-month, far exceeding forecasts and indicating robust business investment.
Federal Reserve officials continued to dominate headlines, with St. Louis Fed’s Alberto Musalem commenting that the labor market is close to full employment and that current policy is appropriate given inflationary pressures. He also warned that the risks of inflation remaining above the 2% target had risen, although he did not foresee a recession. Minneapolis Fed President Neel Kashkari acknowledged progress in reducing inflation but noted that more work remains. He expressed confidence that the Fed could begin reducing interest rates in the next year or two.
In market sentiment, money markets have priced in 64.5 basis points of Fed easing by 2025, according to Prime Market Terminal interest rate probabilities.
Traders are also keeping a close eye on the upcoming release of the core Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, later this week.
Gold Price Technical Outlook:
Gold prices remained volatile on Wednesday, with the market awaiting a catalyst that could either push prices toward new highs or break the solid floor at $3,000. The Relative Strength Index (RSI) is currently bullish but has flattened after consecutive days of slight declines, suggesting a loss of momentum among sellers.
If XAU/USD clears the current week’s high of $3,036, the next target would be the record high of $3,057, potentially paving the way for a move toward $3,100. On the downside, a dip below $3,000 could expose the February 24 swing high at $2,956, followed by the $2,900 mark and the 50-day Simple Moving Average (SMA) at $2,887.
