Gold prices have edged slightly higher after a sharp decline from near all-time highs yesterday, as economic uncertainty and concerns surrounding Donald Trump’s tariff plans continue to support the yellow metal as a safe-haven asset. However, movements remain largely rangebound.
“The recent volatility in gold prices reflects the ongoing economic uncertainty, particularly with the decline in US consumer confidence and mixed signals from Federal Reserve officials on interest rates,” said Vijay Valecha, Chief Investment Officer at Century Financial.
The US consumer confidence index fell to 98.3 in February from 105.3 in the previous month, marking its sharpest decline since August 2021, according to the Conference Board. Meanwhile, Richmond Fed President Thomas Barkin stressed the importance of a wait-and-see approach regarding interest rates until inflation shows clear movement toward the 2% target.
“With the Federal Reserve remaining cautious on rate cuts, gold remains an attractive asset for investors looking to hedge against economic uncertainty,” Valecha added.
Market participants are now eyeing the US New Home Sales data for January, set to be released later on Wednesday, along with speeches from Fed officials, including Raphael Bostic and Thomas Barkin. These events are expected to provide further insight into the central bank’s policy outlook, potentially influencing gold’s trajectory.
From a technical standpoint, gold is currently trading below the 9-day Simple Moving Average (SMA) on the daily chart. “Gold has immediate support at the $2,900 psychological level, while a stronger support level lies at the 61.8% Fibonacci confluence level of $2,891,” Valecha explained.
In the UAE, gold prices today are as follows:
- 24 Carat – AED 351.25
- 22 Carat – AED 327.00
- 21 Carat – AED 313.50
- 18 Carat – AED 268.75
“Gold’s price movements in the UAE continue to be influenced by global economic factors, with investors closely watching developments in the US and Federal Reserve policies,” Valecha concluded.
