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Gold Prices Not Ready To Give Up, Despite Being In Oversold Territory
Wednesday, 5 February 2025 13:01 WIB | GOLD |GOLDEMAS

Gold prices (XAU/USD) continued to rise throughout the Asian session on Wednesday (5/2) and climbed to an all-time high, around the $2,858 region in the last hour.

Concerns about the economic impact of US President Donald Trump's trade tariffs continued to support demand for the safe-haven bullion. Further, expectations that the Federal Reserve (Fed) will maintain its easing cycle, supported by signs of slowing momentum in the US labor market, contributed to driving flows towards the non-yielding yellow metal.

Meanwhile, the US Dollar (USD) languished near weekly lows amid prospects of further policy easing by the Fed and turned out to be another factor providing additional support to Gold prices.

That said, Trump's decision to delay tariffs on Canada and Mexico remains supportive of risk sentiment, which could cap upside for XAU/USD amid slightly overbought conditions on the daily chart. Hence, it would be prudent to wait for a near-term consolidation or a slight pullback before positioning for an extension of the recent upward trajectory. Traders now look forward to the US ADP report on private sector employment and the US ISM Services PMI for some impetus.

Source: FXStreet

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