The GBPCAD price succeeded to confirm the continuation of the positivity by consolidating within the bullish channel, to notice breaching 1.7810$ barrier and achieving many gains by rallying towards 1.7990.
The current negative rebound towards 1.7920 hints the attempt to gather the required additional positive momentum to resume the bullish attack, also, 1.7880 level attempt to form the additional support will reinforce the chances of forming bullish waves to target 1.8030 and 1.8080 levels.
The expected trading range for today is between 1.7880 and 1.8030
Gold price licks wounds after Monday’s steep correction from near-record highs.
Mounting trade war fears could revive the buying interest in Gold price.
Gold price remains poised for upside amid bullish daily RSI while above 21-day SMA.
Gold price licks its wounds following the sharp pullback from three-month highs just shy of the all-time peak of $2,790. Gold trades take account of the latest tariff talks by US President Donald Trump and his administration as attention turns toward mid-tier US economic data and Federal Reserve (Fed) policy announcements.
Despite the unabated haven demand for the US Dollar (USD) amid mounting trade war fears and the extended sell-off on global stocks. The upswing in the US Treasury bond yields on reports of the White House pausing all federal grants add to the bearish undertone in Gold price.
Late Monday, US Treasury Secretary Scott Bessent called for new universal tariffs on US imports, starting at 2.5% and rising gradually, per the Financial Times (FT). Meanwhile, President Trump noted that he plans to impose tariffs on imports of computer chips, pharmaceuticals, steel, aluminum, and copper. He added that he “wants tariffs “much bigger” than 2.5%” as Treasury Secretary Bessent proposed.
The continued tariff threats by the Trump administration continue to dent risk sentiment. Meanwhile, Asian markets are still reeling from the pain of China’s low-cost artificial intelligence (AI) model – DeepSeek-led global AI sell-off, which smashed current AI leader Nvidia by roughly 18% on Tuesday.
Looking ahead, traders look forward to the mid-tier US Durable Goods Orders and Consumer Confidence data for fresh trading impetus. However, US President Donald Trump’s tariff threats and the sentiment on Wall Street will play a key role in driving markets, eventually impacting the value of the USD and the Gold price.
Markets will also remain on a cautious footing as the Fed begins its two-day monetary policy later this Tuesday, with the policy decision and Chairman Jerome Powell’s press conference due on Wednesday.
Gold price technical analysis: Daily chart
The daily chart shows that the short-term technical outlook remains constructive for Gold price despite the long-due correction.
Gold price’s failure to seek daily candlestick closing above the symmetrical triangle target of $2,785 warrants caution for buyers.
However, the 14-day Relative Strength Index (RSI) holds comfortably above the midline, currently near 61, keeping Gold buyers hopeful.
Adding credence to the bullish potential, the 50-day SMA closed above the 100-day SMA last Thursday, confirming a Bull Cross.
Gold price must seek a daily closing above the record high of $2,790 to set a new highest level ever above $2,800. Buyers will then aim for the $2,850 psychological level.
On the downside, the immediate support will be seen at the previous day’s low of $2,731.
Sellers will then aim for the $2,700 round level, below which the 21-day SMA at $2,691 will be challenged.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Silver price trades with caution near $30.00 as the US Dollar surges amid a jittery market mood.
A sell-off in technology stocks across the globe has improved the US Dollar’s appeal.
US bond yields gain as investors expect the Fed to keep interest rates steady.
Silver price (XAG/USD) recovers some of its intraday losses and strives to hold the key level of $30.00 in Tuesday’s European session. The white metal trades with caution amid a dismal market sentiment. The marker sentiment is deeply risk-averse as global technology, power, and data center stocks have faced an intense sell-off as market experts believe that Chinese Deepseek’s low-cost Artificial Intelligence (AI) model could challenge the dominance of top chatbots like OpenAI and Meta.
Technically, the appeal of precious metals increases in a highly risky market environment. However, a significant surge in the US Dollar (USD) and bond yields has restrictive the upside in the Silver price. The safe-haven demand for the US Dollar has increased significantly amid a sharp sell-off in technology stocks. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, jumps to near 108.00.
Meanwhile, 10-year US Treasury yields jump to near 4.56% ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday. The Fed is certain to announce a temporary pause in the policy-easing cycle and leave interest rates unchanged in the range of 4.25%-4.50%, according to the CME FedWatch tool.
Investors will pay close attention to Fed Chair Jerome Powell’s press conference to know for how long the Fed will keep borrowing rates steady. Market participants would be keen to know the impact of potential tariffs by President Donald Trump on the monetary policy stance and the economy.
Silver technical analysis
Silver price struggles near the 50-day Exponential Moving Average (EMA) around $30.40. The white metal continues to face pressure near the upward-sloping trendline around $30.90, which is plotted from the 29 February 2024 low of $22.30 on a daily timeframe.
The broader outlook of the Silver price remains firm above the 200-day Exponential Moving Average (EMA), which trades around $29.50.
The 14-day Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, suggesting a sideways trend.
Silver daily chart
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Novavax’s stock price (NVAX) edged higher in the intraday levels, buoyed by trading above the 50-day SMA, and with positive signals from the RSI, while trading alongside the secondary upward trend line in the short term.
Therefore we expect more gains for the price, targeting the resistance of $12.23, provided the support of $8.40 holds on.
The lack of the positive momentum led the EURJPY pair to provide mixed trades, to move within tight track represented by 163.25 resistance and 161.60 support.
Also, the recent contradiction between the major indicators reinforces the domination of the sideways bias, to stay neutral until surpassing one of the major levels, noting that succeeding to breach the resistance will confirm moving to the bullish track to start achieving many gains that start at 164.00, while breaking the support and holding below it will force the price to suffer many losses by moving towards 161.00 first.
The expected trading range for today is between 161.65 and 163.25
Silver trades with a negative bias above a nearly two-week low touched on Monday.
The technical setup favors bearish trades and supports prospects for deeper losses.
A sustained move beyond the 100-day SMA is needed to negate the negative bias.
Silver (XAG/USD) struggles to capitalize on the previous day’s bounce from the $29.70 area, or a nearly two-week low and ticks lower during the Asian session on Tuesday. The white metal currently trades just above the $30.00 psychological mark, down 0.20% for the day and seems vulnerable to slide further.
Last week’s failure near the 100-day Simple Moving Average (SMA) and a subsequent breakdown below a short-term ascending trend-channel favor bearish traders. Meanwhile, oscillators on the daily chart – though have been losing traction – are yet to confirm a negative outlook. This, in turn, makes it prudent to wait for some follow-through selling below the overnight swing low, around the $29.70 zone before positioning for deeper losses.
The XAG/USD might then weaken further below mid-$29.00s and test the next relevant support near the $29.10-$29.00 area. The downward trajectory could extend further towards the $28.75-$28.70 region, or a multi-month low touched in December, before the white metal slides further towards the $28.00 round-figure mark.
On the flip side, the ascending channel breakpoint, around the $30.30 area, now seems to act as an immediate hurdle ahead of the $30.50-$30.60 region. Any further move up might continue to face stiff resistance and remain capped near the $31.00 mark, or the 100-day SMA. The latter should act as a key pivotal point, which if cleared decisively might shift the near-term bias in favor of bullish traders and pave the way for a further appreciating move.
Silver daily chart
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
The AUDUSD price traded negatively to break the intraday bullish channel’s support line that appears on the chart, which forms bearish flag pattern that puts the price under expected negative pressure on the intraday basis, to head towards achieving negative targets that start by visiting 0.6165$ followed by 0.6130$ levels.
Therefore, the bearish bias will be suggested for today, noting that breaching 0.6322$ will stop the expected decline and lead the price to achieve additional bullish correction that its next target reaches 0.6440$ areas.
The expected trading range for today is between 0.6200$ support and 0.6300$ resistance
There was a potential support zone identified from 3.70 to 3.64. The drop today exceeded the low of the range but the close could be within it. Nevertheless, although there is a chance that the support zone may hold and lead to a bounce, it looks like lower trend support levels may be tested before the retracement is complete. Today may be the beginning of a realignment of the angle of ascent that natural gas has been on since last August’s swing low.
If there is bearish follow-through then the price area around the 50-Day MA looks likely to be hit. The 50-Day line is currently at 3.49 and it is part of the price range from 3.52 to 3.49. The 61.8% Fibonacci retracement level is at 3.51 and there is an 127.2% extended target for a falling ABCD pattern at 3.52.
Double Top with Two Bearish Reversal Days
It looks like the two wide range red candles near the two recent highs on January 13 and 17 were sending a warning for an interim top. Together they formed a double top pattern with a confirmed breakdown triggered today. The pattern is not perfect given the short rally from last Wednesday’s low. However, it provides another piece of bearish technical evidence for a deeper correction given today’s break below trend support.
Below 50-Day MA Could See 3.38 Area
Nonetheless, if support fails to hold at or above the 50-Day MA, lower potential support levels may be tested. There is a prior swing high at 3.39, and the 78.6% retracement level is at 3.28. Also, an internal trendline showing potential dynamic support would need to be considered as well. The above bearish scenario might start to shift if natural gas can reclaim the 20-Day line and today’s high at 3.83 and then stay there.
For a look at all of today’s economic events, check out our economic calendar.
Stock markets lead the sentiment ahead of central banks’ announcements.
The Chinese January Purchasing Managers’ Indexes came in worse than anticipated.
XAU/USD is bearish in the near term, could approach the $2,700 mark before bouncing.
Spot Gold is under strong selling pressure at the beginning of the week, trading around the $2,730 mark in the American session. The bright metal was unable to advance against a battered US Dollar (USD) despite a dismal market mood.
News coming from China undermined the market sentiment. On the one hand, the country reported that business output declined in January. The NBS Manufacturing Purchasing Managers Index (PMI) printed at 49.1, below the 50.1 posted in December. The Non-Manufacturing PMI came in at 50.2, down from the previous 52.2.
Asian stock markets gained amid news related to AI developments while weighing on their overseas counterparts. DeepSeek, a Chinese AI company, gained traction and dragged alongside the tech sector. The same rally, however, fueled concerns about cheaper AI from China threatening US tech dominance. At the time being, Wall Street remains in the red, albeit most major indexes trimmed a good chunk of their early losses.
Speculative interest will now shift the focus to the upcoming central banks’ decision. The Federal Reserve (Fed) will announce its decision on monetary policy on Wednesday, while the European Central Bank (ECB) will follow on Thursday. At the same time, the United States (US) will release the preliminary estimate of the Q4 Gross Domestic Product (GDP). Annualized growth is foreseen at 2.8%, easing from the 3.1% posted in Q3 yet still indicating healthy progress.
XAU/USD short-term technical outlook
From a technical point of view, XAU/USD seems to be correcting overbought conditions. In the daily chart, technical indicators retreat from extreme peaks, heading firmly lower albeit well above their mid-lines, not enough to support a sustained bearish continuation. At the same time, the 20 Simple Moving Average (SMA) maintains a bullish slope, providing dynamic support at around $2,687.70. The 100 and 200 SMAs, in the meantime, have lost their upward strength, far below the shorter one.
In the near term, and according to the 4-hour chart, XAU/USD is poised to extend its slide. The pair accelerated sharply lower once it broke below a now bearish 20 SMA. At the same time, technical indicators head south almost vertically within negative levels without showing signs of downward exhaustion. Still, Gold remains far above its 100 and 200 SMAs, supporting the case of an ongoing correction rather than anticipating a continued slide.
Ethereum price (ETHUSD) declined strongly to succeed touching our suggested negative target at 3017.30$, and the way seems open to surpass this level and suffer additional losses on the intraday and short-term basis, noting that confirming the break will push the price towards 2765.00$ as a next negative station.
On the other hand, we should note that the consolidation of 3017.30$ level against the current negative pressure will lead the price to attempt to recover and build bullish wave that targets testing 3222.00$ areas initially.
The expected trading range for today is between 2950.00$ support and 3200.00$ resistance.
