10.02.202518:51 Forex Analysis & Reviews: XAU/USD: Analysis and Forecast

At the start of the new trading week, gold continues its bullish momentum, setting a new all-time high. This rally is driven by concerns over the economic impact of new tariffs imposed by U.S. President Donald Trump, as well as escalating trade tensions between the U.S. and China, which are fueling demand for safe-haven assets like gold.

Additionally, fears that Trump's protectionist policies could reignite inflation in the U.S. are making gold an attractive hedge against rising prices.

On the other hand, the U.S. dollar could attract some buyers, given expectations that the Federal Reserve will maintain its hawkish stance due to a resilient labor market and ongoing inflation concerns. However, this is not weakening demand for gold or hindering its upward trajectory.

Despite these factors, overbought conditions on the daily chart may deter traders from opening new long positions. Nonetheless, the fundamental backdrop suggests that gold is likely to maintain its uptrend.

From a technical point of view, the RSI (Relative Strength Index) is in overbought territory, signaling a need for caution among bulls. It may be prudent to wait for a short-term consolidation or correction before entering new long positions. The next upward target is at $2,900.

A pullback below $2,855 could present a buying opportunity, limiting gold's downside near $2,834. If selling pressure continues, XAU/USD could decline toward $2,814 before testing the psychological level of $2,800.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.