9:33 AM ยท 28 February 2025

GOLD extends sell-off, losing 0.6% as trade war fear fuel strengthening US dollar ๐Ÿ“‰

Gold extends its decline, supported by the strengthening US dollar, which gained momentum after Trump announced a 25% tariff on the European Union, Canada, and Mexico, along with an additional 10% tariff on Chinese goods. This move will raise the total tariff rate on Chinese imports to 20%. A stronger dollar makes gold, which is denominated in USD, less attractive to foreign investors. As a result, gold is heading for its first weekly decline of 2025.

With US inflation data indicating a potential rebound in prices, the Federal Reserve appears ready to adopt a more hawkish stance on monetary policy. This was reflected in yesterday’s comments from Fed officials, including Patrick Harker, who stated that rising inflation expectations are forcing the central bank to reassess its policy. Harker also cast doubt on any rate cuts this year. At 2:30 PM today, the market will receive key data, including the PCE inflation report. During this time, increased volatility in gold prices can be expected, and stronger-than-forecast data may weigh on sentiment in the metals market.

GOLD (D1 Interval)

Gold is down nearly 0.6% amid a strengthening US dollar. The last time GOLD tested the 200-day EMA was at the turn of January and February 2024. Today’s bearish impulse is the largest since October of last year. Silver is also following gold’s downward movement, retreating by 0.8% to $31 per ounce.Source: xStation5

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