Article by: ETO Markets

Gold (XAU/USD) consolidates near record highs below $... as investors weigh geopolitical tensions and US President Donald Trump's renewed tariff threats, which could fuel inflation and support demand for the safe-haven metal. However, a hawkish Federal Reserve stance, reinforced by its decision to hold interest rates steady, has lifted US Treasury yields and the US Dollar, capping gold's gains. The latest US GDP data showed a slowdown to 2.3% in Q4, below expectations, further driving gold demand. Meanwhile, traders remain cautious, awaiting the US PCE Price Index for further market direction. 

From a technical standpoint, a sustained move above $... could signal further bullish momentum, but with the daily RSI nearing overbought territory, a near-term consolidation or pullback may be necessary before fresh upside positioning. Due to the yearly-high price $..., the strong resistance level would be on the psychological level $.... On the downside, initial support is seen at the $...-... zone, followed by $...-.... A break below these levels could trigger long-unwinding, potentially dragging gold toward $... and the critical $...-... support zone, where a decisive breach may open the door for further declines.