GOLD corrected and recovered, as the US Dollar soared

XAUUSD Spot prices fell below 2,780 USD/ounce and recovered slightly. As of the time this article was completed, gold prices were trading at around 2,783 USD/ounce, as the strong US Dollar overshadowed safe haven demand. after the United States announced tariffs on imports from Canada, Mexico and China.

On February 1, US President Trump signed an executive order imposing a 10% tariff on goods imported from China. The United States will also impose a 25% tariff on goods imported from Mexico and Canada. On the evening of February 2 local time, Trump announced that he would "definitely" impose new tariffs on the European Union.

While these developments typically boost safe-haven demand for precious metals, the stronger dollar and interest rate outlook have offset those pressures. The inflationary impact of tariffs could cause borrowing costs to remain high, which could put pressure on gold as it does not pay interest, while a stronger dollar makes dollar-denominated gold expensive. red and less attractive.

However, the current price decline is not something to worry about for the uptrend of gold prices, and in terms of general fundamental assessment, it still has a positive outlook in the near future when there are too many risks. with the potential for a long-lasting trade war.

On the daily chart, XAUUSD recovered after approaching the 0.236% trendline Fibonacci extension and is currently trading around 2,783USD.

With its current position, gold still has conditions to increase in price with the price channel as the main trend and main support from the EMA21. On the other hand, the Relative Strength Index (RSI) is still in the green uptrend. Although the room for growth is not much, it does not mean it is over.

If gold breaks above the $2,785 technical level it will have upside conditions with a target then around $2,800 in the short term, more than the 0.50% Fibonacci extension.

As long as gold remains within the price channel, above EMA21, it still has a bullish outlook and notable levels are listed below.
Support: 2,774 – 2,762USD
Resistance: 2,785 – 2,800USD

SELL XAUUSD PRICE 2827 - 2825⚡️
↠↠ Stoploss 2831

→Take Profit 1 2820
↨
→Take Profit 2 2815

BUY XAUUSD PRICE 2767 - 2769⚡️
↠↠ Stoploss 2763

→Take Profit 1 2774
↨
→Take Profit 2 2779