xau-usd
Arslan Butt•Wednesday, January 29, 2025•2 min read
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Gold prices remained largely unchanged on Wednesday, hovering near $2,762 as investors adopted a wait-and-see approach ahead of the Federal Reserve’s interest rate decision.
The market remains on edge following President Donald Trump’s renewed tariff threats, which could introduce fresh inflationary pressures.
After flirting with record highs last week, gold slipped over 1% on Monday as investors liquidated positions to offset losses from a sharp selloff in technology stocks. The downturn was triggered by the emergence of DeepSeek’s low-cost AI model, which shook investor confidence in high-growth sectors.
Despite gold’s pullback, some analysts believe that market uncertainty and de-dollarization concerns will continue to support bullion. “Gold is catching a bid because of a desire to hedge against deficits, debt, and de-dollarization,” said Kyle Rodda, financial analyst at 
The future of trading . However, he noted that gold’s failure to break through previous highs remains a concern.
XAU/USD
Trump’s Tariff Plans and the Inflation Conundrum
President Trump has reaffirmed his commitment to imposing tariffs on Canadian and Mexican imports, with the latest measures set to take effect on Saturday. The move is expected to stoke inflationary fears, a key consideration for the Federal Reserve as it assesses its policy stance.
While the Fed is widely expected to keep rates unchanged, the market remains keen on any signals regarding future policy adjustments. Trump’s persistent calls for rate cuts put the central bank in a challenging position. Although lower interest rates could boost gold’s appeal, inflationary risks from trade policies may force the Fed to maintain a cautious stance.
“Trump’s policies are perceived as inflationary, which could lead the Fed to keep rates higher for longer,” said a senior economist. If inflation accelerates, the dollar could strengthen, potentially capping gold’s upside.
Gold’s Technical Landscape: Key Levels to Watch
Gold is currently navigating a consolidation phase, with price action centered around $2,762. The metal is facing resistance at $2,765, while support remains firm at $2,749.
Technical Indicators:
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50-Day EMA: $2,752 (Acting as support)
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200-Day EMA: $2,730 (Longer-term support level)
Gold remains above its 50-day EMA, suggesting that buyers are still in play. However, a failure to break $2,765 could trigger a retracement toward $2,749. If gold clears $2,782, it could retest the $2,797 resistance zone.
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
