- XAU/USD expands profits amid geopolitical tensions despite solid data from US employment
- US tariffs on Canada’s aluminum and steel imports begin Wednesday, enhancing the appeal of gold’s safe cozy.
- The market is awaiting US CPI inflation data on Wednesday, Thursday and Thursday for next information about the Fed.
Gold (XAU) surged on Tuesday as concerns over the ongoing trade war fueled demand for the precious metal, known for its safe-haven appeal. Despite positive U.S. employment data, traders remained focused on accumulating Bullion. As a result, XAU/USD is currently trading at $2,917, marking a gain of over 1%.
Market sentiment has improved recently after Canada and the U.S. took steps to ease tariff tensions. However, fears of an economic slowdown in the U.S. have put downward pressure on both Treasury yields and the U.S. dollar, providing support for Gold prices.
At the same time, new trade tariffs on aluminum and steel imports, introduced by former U.S. President Donald Trump, are set to take effect on Wednesday. Meanwhile, the latest report from the U.S. Bureau of Labor Statistics (BLS) indicated a rise in job openings for February.
In geopolitical developments, breaking news from Saudi Arabia suggests that Ukraine is open to accepting a ceasefire proposal. U.S. Secretary of State Marco Rubio stated that the decision now rests with the U.S. to persuade Russia to agree. Ukrainian President Volodymyr Zelenskyy added that the next steps depend on Washington’s negotiations with Moscow.
If a ceasefire is achieved, it could put downward pressure on Gold prices, as the metal typically benefits from heightened geopolitical uncertainty and recessionary fears.
Looking ahead, XAU/USD traders are closely watching key economic data releases in the U.S., including the Consumer Price Index (CPI) report on Wednesday and the Producer Price Index (PPI) report on Thursday.
Market Movers Daily: Gold Holds Steady Despite Rising US Yields
- As dealers observe the Fed’s interest reduction, the 10-year-old bond return for US funding recovers and evaluates 6 basis points to 4.282%.
- Inflation Protection Securities (TIPS), the actual American return measured in the 10-year-old US, correlates to gold prices, rising at 5 basis points at 1.963%, a non-jeg metal headwind.
- The Atlanta-FED-BIP model currently forecasts the first quarter of 2025 at -2.4%.
- The USJOLT report showed vacancy rose to 7.74 billion in January, up from 7.508 million, surpassing expectations of 763 million. This has continued power in the labor market.
- According to the World Gold Council (WGC), China’s Volksbank (PBOC) continues to buy gold. The PBOC increased participation by 10 tons in the first two months of 2025. However, the biggest buyer is the National Bank of Poland (NBP), which has increased the reserves by 29 tons since it acquired 95 tons in June 2019.
- In 2025, Money Market For Money Market dealers had a basis for a 77.5-based easing in 2025 compared to the 74 bps last Friday on Prime Market Terminal data.
Gold Price (XAU/USD) Technical Analysis
From a technical perspective, gold remains in an upward trend, but buyers must surpass last week’s high of $2,930 from March 7 to gain momentum toward a key psychological level. Breaking this barrier could open the door to the record high of $2,954, with the $3,000 milestone as the next target.
On the downside, if XAU/USD falls below $2,900, the next level of support is around $2,850, followed by the February 28 low of $2,832. A further decline could bring $2,800 into focus.
