The week starts with the market in the midst of 7 weeks Rally, making it vulnerable to a potentially bearish final price reinforcing.
Last week, XAU/USD settled at $ 2882.48, an increase of $ 21.23 or +0.74%.
The concern of the trade war continues to support the question of the golden
Gold’s power this week was fed by the growing trade tensions after US President Donald Trump had signed an executive order aimed at the trade policy of foreign nations. The plan introduces mutual rates for countries that impose taxes on the entry of the US, which increases the fear of a long -term trader.
Although Trump played the immediate tariff implementation, the move injected new uncertainty into global markets. This uncertainty has supported gold prices because investors remain on their care for retaliation actions of important trading partners and the broader economic impact of potential new rates.
Inflation data reinforces concern about the price pressure
Recent American inflation reports showed stronger than expected price increases, which contributes to the concern that inflation remains persistent. The consumer price index (CPI) rose by 0.5% in January and exceeds expectations, while wholesale inflation, measured by the producer Price Index (PPI), climbed 3.5% on an annual basis. Both measurements suggest inflationary pressure that the Federal Reserve could keep carefully on cutting back the interest rates.
Some aspects of these reports, however, indicate a potentially softer reading in the coming personal consumption outsents (PCE) index, the preferred factories of the FED. Markets will keep a close eye on this data for further insight into the inflation views.