Julesd (XAU/USD) remains unstoppable, supported by poor market sentiment on the back of rising US-EU tensions and a widespread de-dollarization process. The precious metal is up more than 2% on the day and nearly 5% so far this week to trade at $4,860 at the time of writing.
Demand for safe havens such as gold remains strong on Wednesday, as investors hold their breath ahead of US President Trump’s speech at the World Economic Forum in Davos, scheduled for later on Wednesday.
The US President shook the markets this week due to his obsession with controlling Greenland and threatening to impose additional tariffs on countries that oppose his plans. These actions have revived the “Sell America” trade seen after Liberation Day in April, which sent the US Dollar Index (DXY) lower.
Technical Analysis: Technical indicators indicate an excessive rise
The XAU/USD pair is trading at $4,864, with the 100-day simple moving average rising to the 4,520.74 area, reinforcing bullish support. Technical indicators are showing sharply overbought levels, but the precious metal refuses to decline, supported by the fundamental scenario.
The moving average convergence-divergence (MACD) line stands well above the signal line and above zero, with the histogram expanding positively, indicating strengthening bullish momentum. The Relative Strength Index (RSI), near 85, is heavily overbought, at levels that would normally expect a correction or, at least, some consolidation.
The upside move was capped at $4,888 earlier on Friday, just below the psychological level of $4,900. Furthermore, the 265.8% Fibonacci extension of the January 8-15 rally at $4,991 and the $5,000 round level seems a reasonable target. On the downside, the January 16 high of $4,690 and January 13-15 low of $4,575 may provide support for a downward correction.
(The technical analysis for this story was written with the help of an artificial intelligence tool.)
US dollar price this week
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed this week. The US dollar was the strongest against the Japanese yen.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -1.15% | -0.45% | 0.09% | -0.68% | -1.26% | -1.92% | -1.33% | |
| euro | 1.15% | 0.70% | 1.22% | 0.48% | -0.13% | -0.79% | -0.19% | |
| GBP | 0.45% | -0.70% | 0.28% | -0.22% | -0.82% | -1.48% | -0.88% | |
| JPY | -0.09% | -1.22% | -0.28% | -0.73% | -1.32% | -1.96% | -1.38% | |
| Canadian | 0.68% | -0.48% | 0.22% | 0.73% | -0.57% | -1.24% | -0.66% | |
| Australian dollar | 1.26% | 0.13% | 0.82% | 1.32% | 0.57% | -0.66% | -0.07% | |
| New Zealand dollar | 1.92% | 0.79% | 1.48% | 1.96% | 1.24% | 0.66% | 0.60% | |
| Swiss franc | 1.33% | 0.19% | 0.88% | 1.38% | 0.66% | 0.07% | -0.60% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
