Gold reached a new all-time high before stabilizing

Gold (XAU/USD) surged to a new all-time high above $2,945 during Wednesday’s European session before stabilizing ahead of U.S. market hours. The rally followed U.S. President Donald Trump’s sharp remarks on Ukraine, which raised doubts among traders about the possibility of a peace deal, despite initial talks between U.S. and Russian officials. Additionally, Trump reaffirmed plans for 25% tariffs on automobile imports, extending them to pharmaceuticals and semiconductors.

Meanwhile, the Federal Reserve (Fed) is set to release the FOMC Minutes from its January meeting, potentially impacting gold. Several Fed officials have recently stated that interest rates are appropriately positioned, while persistent inflation concerns add further uncertainty.

Market Movers: Key Developments

• Mortgage applications dropped 6.6% this week, strengthening the U.S. dollar and causing gold to retreat from its new all-time high.
• The Fed’s January FOMC Minutes will be released at 19:00 GMT, a key event that could influence gold’s trajectory.
• President Trump reaffirmed a 25% tariff on automobile, semiconductor, and pharmaceutical imports, as confirmed by Bloomberg.
• Turkish gold miner Koza Altin plans to produce over 40 tons of gold in the next five years, according to an exchange filing.
• The U.S. 10-year Treasury yield is trading near its weekly high at 4.57%.

Technical Analysis: Growing Market Caution

Gold faces a critical test after reaching a record high above $2,945. With the Fed Minutes looming, the market risks a pullback. From a technical perspective, this could signal a rejection at the all-time high, encouraging sellers to push prices lower.

The first key support is at $2,921 (daily pivot point), which already held during the Asian session. If pressure builds, the next support at $2,906 (S1) could come into play.

The initial resistance is at $2,951 (R1), followed by $2,966 (R2). A sustained breakout could bring the $3,000 milestone into focus.