XAU/USD Current price: $4,616

• Political noise in the United States boosted demand for the safe-haven metal.
• The US Consumer Price Index is foreseen up by 2.7% YoY in December.
• XAU/USD trades above $4,600, maintaining its positive momentum.

Spot Gold reached fresh all-time highs on Monday, nearing the $4,630 mark and trading nearby in the American session. The US Dollar (USD) fell on the back of political tensions in the United States (US) on the back of fresh tensions between President Donald Trump and Federal Reserve’s (Fed) Chair Jerome Powell.

The US Department of Justice opened a probe into Powell over the renovations of the central bank’s headquarters, and accused him of lying before Congress. Chair Powell responded: “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”

Meanwhile, US President Trump continues his campaign to take over Greenland. The Danish region, rich in rare earth elements and other minerals, has become the latest target of Trump. Let’s not forget he also pledged to “help” the Iranian people, after days of widespread protest against the government.

The same catalysts pushed investors into safe-haven gold, sending XAU/USD to record highs.

Meanwhile, investors await fresh US data. The country will release the December Consumer Price Index (CPI) on Tuesday. Annual inflation, as measured by the CPI is foreseen at 2.7% YoY in the month, up from the 2.6% posted in November. The monthly increase is foreseen at 0.3%, matching the previous month’s reading.

XAU/USD short-term technical outlook

The 4-hour chart shows that XAU/USD is extremely overbought, but shy downward corrections suggest buyers are still willing to push it higher. The 20-period Simple Moving Average (SMA) stands above the 100 and 200 SMAs, and all three slope higher, underscoring a firm bullish bias, with the 20 SMA at $4,502.36 offering nearby dynamic support. At the same time, the Momentum indicator eases from extreme levels, while the Relative Strength Index (RSI) indicator stands at 76, also losing upward momentum. A firmer pullback would be cushioned by the 100 SMA at $4,430.87-

In the daily chart, XAU/USD is poised to extend its advance. The 20-day SMA climbs above the 100- and 200-day SMAs, all of them far below the current level. Meanwhile, the Momentum indicator aims north within positive levels, while the RSI indicator accelerates higher, now at 71, without any sign of upward exhaustion.

(The technical analysis of this story was written with the help of an AI tool.)