Gold Daily | Spot Gold Climbs on Weaker Dollar and Trump's Policy Uncertainty Ahead of Inauguration

【Latest Gold Price and Recent Trends】

Spot gold prices rose by 0.3% to around $2710, driven by a weaker dollar as investors await Trump's inauguration speech for policy insights. Earlier, spot gold had dipped by 0.5%.

【Technical Analysis】

On the daily chart, gold reached the resistance level at $2721 but was pushed back to the support zone at $2700. Buyers aim for a breakout to boost bullish sentiment. The 4-hour chart shows an upward trend line dictating bullish momentum, while the 1-hour chart indicates a corrective phase with sellers pressing downwards.

【Market Sentiment and Economic Background】

The dollar's weakness makes gold more appealing to foreign buyers as Trump's key week approaches, with a weaker dollar linked to Trump's potential softer stance on trade and tariffs. This could ease inflation concerns, benefiting gold. Trump's broad trade tariffs are expected to further drive inflation, increasing gold's appeal as a hedge. Additionally, inflation fears may have peaked, and expectations for rate cuts are being repriced, supporting gold.

【Analyst Opinions】

KCM's Tim Waterer suggests that a softer Trump stance on trade could support gold. Goldman Sachs notes that gold may avoid tariffs, predicting a 10% chance of a tariff on gold within 12 months. High Ridge's David Meger points to Trump's policy uncertainties as supportive of gold, with OANDA's Zain Vawda highlighting global economic uncertainty sustaining gold's demand.