- Gold remains firmly above $2,900 midway through the European trading session on Tuesday.
- Markets are keeping an eye on developments from Saudi Arabia, where US and Russian officials are in talks.
- A daily close above $2,910 could set Gold on course for a new all-time high this week.
Gold (XAU/USD) is showing a near 0.50% gain this Tuesday during the European trading session, hovering around $2,910 at the time of writing. US yields are adjusting after the US President's Day holiday, yet Gold remains a favored asset for traders seeking a safe haven amid geopolitical uncertainty and tariffs.
In the US, Philadelphia Federal Reserve President Patrick Harker advocated for keeping interest rates unchanged, citing that recent inflation data doesn’t align with the current economic conditions. Later on Tuesday, speeches from Federal Reserve Bank of San Francisco President Mary Daly and Federal Reserve Vice Chair for Supervision Michael Barr are expected at 15:20 GMT and 18:00 GMT, respectively.
Daily Digest: Market Movers
- Goldman Sachs raised its year-end gold price target to $3,100 per ounce, driven by central bank purchases and strong inflows into gold-backed exchange-traded funds, according to Reuters.
- Gold shipments from Singapore to the US surged to their highest level in nearly three years in January, marking a 27% increase from December. This reflects ongoing shifts in bullion trading as pricing disparities emerge in key markets, reports Bloomberg.
- The US administration has asked European countries to clarify the security guarantees they are willing to provide to Ukraine in the context of a peace deal, following US President Donald Trump’s push to initiate talks with Russian President Vladimir Putin.
- Investors are closely examining the details of the US reciprocal tariff plans, which may take months to implement due to their complexity. The delays and exclusions surrounding Trump’s trade policies have led to growing concerns over the global economic impact, further boosting gold’s appeal as a store of value.
Technical Analysis: Hot and Getting Hotter
Gold continues to climb this week, inching closer to new all-time highs. However, the Relative Strength Index (RSI) on the daily chart is signaling overbought conditions, suggesting the price may be overheating. With the RSI elevated, buyers may become hesitant, potentially waiting for prices to cool down before making further purchases.
After a relatively small move on Monday, the daily pivot levels have tightened. The first support level is seen at $2,893, the daily Pivot Point, which held as support during the Asian session. If this level is tested again on Tuesday, the S1 support at $2,881 could offer further protection.
On the upside, the R1 resistance at $2,909 is being retested, and a daily close above this level would indicate bullish momentum, paving the way for more upside through Wednesday. The next resistance level is at $2,921, with the potential for a fresh all-time high at $2,942.
