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Gold’s price (XAU/USD) reached a fresh record high this week. This movement followed a sharp decline in weekly US mortgage applications. The earlier rise was driven by geopolitical concerns after US President Donald Trump made strong remarks about Ukraine, increasing market uncertainty. Additionally, President Trump confirmed that tariffs on automobile, semiconductor, and pharmaceutical imports would soon take effect, further fueling economic concerns. Meanwhile, the Federal Reserve is set to release its Federal Open Market Committee (FOMC) minutes for the January meeting, which could impact gold prices. Several Fed officials have indicated that interest rates are at reasonable levels while inflation concerns persist.
 

Gold’s Recent Price Action and Market Movers

Gold has been on a strong bullish run, breaking through key resistance levels. The price surged past the $2,900 zone before experiencing a slight pullback. This recent rally has been driven by a mix of geopolitical uncertainty, increased demand for safe-haven assets, and concerns over US economic policies. Investors are closely watching market conditions as gold's movement remains sensitive to economic and political developments.

Several key factors have influenced gold’s price action. US Mortgage Applications dropped by 6.6% in a single week, strengthening the US Dollar and causing gold to retrace from its peak. Economic tensions have also escalated as US President Donald Trump reaffirmed his plan to impose 25% tariffs on key imports. Meanwhile, Turkish gold miner Koza Altin announced an ambitious plan to boost production to over 40 tons in the next five years. Lastly, the US 10-year Treasury yield has climbed to a weekly high near 4.57%, further impacting gold’s movement.
 

Technical Analysis of Gold’s Price Chart

The provided price chart indicates that gold has been trading within an ascending channel, which later evolved into an ascending broadening wedge. This pattern suggests increasing volatility and the potential for a breakout in either direction. Recently, gold broke above a key resistance level around $2,720, triggering a sharp rally toward the $2,900-$3,000 range. Additionally, a double bottom formation around $2,550 signaled strong bullish momentum before the breakout, reinforcing the uptrend.

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Technical indicators further support gold’s strong performance. In terms of key levels, the $2,900-$3,000 range acts as strong resistance, while $2,800 serves as a critical support level. A break below $2,800 could lead to a deeper correction, whereas sustained movement above $3,000 could push prices even higher.
 

Conclusion

Gold's recent rally to record highs reflects ongoing geopolitical tensions and economic uncertainties. Meanwhile, technical indicators show gold is in a strong uptrend. Traders should watch key resistance at $3,000 to determine the next major move.

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